3-year fixed mortgage rates flavour of the week

So far, the bond market, which determines mortgage rates, isn’t overly stressed about Donald Trump's attempts to interfere with the U.S. Federal Reserve's independence. But that could change. Photo by Andrew Harnik / The Associated Press

The rate news of the week is Trump’s attempted manipulation of the United States Federal Reserve . That’s got some investors worried he’ll strong-arm rates lower and pour gasoline on inflation .

So far, however, the bond market isn’t overly stressed about it, with U.S. five-year yields making four-month lows. This, in turn, is softening Canadian yields too, which is helpful for keeping fixed rates in check.

Longer term, however, if Fed independence evaporates, investors may tack on bigger risk premiums to the bonds that anchor fixed mortgage