Borrowers shouldn't expect big rate moves until next year

A “for sale” sign stands outside a Saskatoon home. Photo by Michelle Berg/Saskatoon StarPhoenix/Postmedia files

Mortgage rates continue to cruise somewhere between flat and gently descending.

That, coupled with slightly better pricing and chatter about no more Bank of Canada rate cuts , has borrowers favouring three-year fixed and variable deals over the venerable five-year fixed.

Whether a short-term or variable strategy pays off rests partly on whether Canada and the U.S. resolve their trade dispute favourably — clarity we won’t get until at least next year.

In the meantime, the fog of uncertainty will weigh down business investment in Canada. Barring any upside growth or inflation bombshells, bond yields should remain flat to lower through year-end. I’m not expecting