As you can see from this chart, 5 year mortgage bond yields are up sharply since spring.
This has created upwards pressure on five year mortgage rates, thus making buying houses or condos more expensive.
As shown here for the last few weeks, due to CMHC capping its insurance to lenders, and rising Government of Canada bond yields, mortgage rates were expected to rise, and they did as shown in this Financial Post article.
Specifically this means that house or condos will be tougher to finance and more people will rent, longer .. thus driving up rents and values of apartment building values, as we see across our portfolio now approaching 1000 units (assuming we close our well positioned, under-rented large 70+ unit asset under contract in Edmonton in October)
Thomas Beyer, President