Canada's Housing Market Weakens in August as Borrowing Costs Set to Rise, National Bank Says

10:06 AM EDT, 09/17/2026 (MT Newswires) -- The Teranet-National Bank Composite Index declined again in August, falling 0.2% on the month after a 0.1% gain in July, according to National Bank in a note Thursday. This represents the eighth decline in the past nine months, causing home prices to drop 4.2% from their November 2025 peak and fall to their lowest point since April 2023, said the bank. The July uptick signaled a brief housing market rebound fueled by better jobs and affordability, but sales declined again in August, weakening price trends and suggesting the job market's momentum is fading, wrote National Bank Senior Economist Daren King in the note. Rising US bond yields have pushed Canadian bond yields higher, and although mortgage rates remain stable, financing costs are expected to increase soon. This will likely reduce borrowing capacity and slow price growth further, added King.