07:15 AM EDT, 05/22/2026 (MT Newswires) -- With Canadian five-year bond yields pushing multi-year highs in recent days, the path of least resistance for Canadian fixed mortgage rates is higher, said Bank of Montreal (BMO).

That's certainly not going to help the bull case for a late-spring/summer revival in Canadian housing, noted the bank.

The incremental tightening is also not going to help the wave of renewals, which will be peaking in numbers by around June. That said, with the Bank of Canada firmly on hold in BMO's view, variable mortgage rates should remain tucked below 4% for the rest of the year.

As the market -- renewals or new buyers -- shifts in that direction, it will limit the impact of higher fixed rates, stated the bank.

In recent months, roughly 40% of new mortgages have been in variable, which is already on the high side, added BMO.