Make or break time

The graph above is the Canadian five year bond yield. As you can see it started it's parabolic ascent early May. The rush to use up the low-rate pre-approvals SHOULD be almost over. Unless we are really headed for the stratosphere I actually expect things to settle here for a while. The US economy (which is what started the super low rates and now the rebound) is not strong enough to absorb much higher rates.

Throw in the CMHC changes, tepid jobs and wages situation and we should see some real weakness in the low and mid market starting right now! As I have said before the higher end has it's own dynamics.