Rising Risk for Canada's Spring Housing Market -- Market Talk

1026 ET - Canada's housing market remains soft, with a combination of higher fixed mortgage rates and potential Bank of Canada tightening likely keeping buyers on the defensive, Bank of Montreal's Robert Kavcic says. The economist continues to argue that market pricing of a percentage point in interest rates increases in 2027 is too aggressive, but says the balance of risk is tilting to the upside for variable rates into the coming spring market for housing. "This poses an issue for the market given that variable rates are currently the lowest available by a relatively wide margin, and most buyers have pivoted to that space," he says. (robb.stewart@wsj.com; @RobbMStewart)

(END) Dow Jones Newswires

October 16, 2026 10:26 ET (14:26 GMT)