Mortgage rates fall for second consecutive week
Mortgage rates have declined for the second consecutive week, coinciding with a drop in Treasury yields. This trend is being closely watched by investors as they balance interest rate movements against rising trade tensions between the US, Canada, and Iran. The Canadian economy grew 3.3% in the second quarter, and the Bank of Canada is set to make a rate decision on September 2.
What changed
The Canadian economy's 3.3% growth in the second quarter has been confirmed, and the Bank of Canada's rate decision is now set for September 2.
Live updates
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Mortgage rates fall for second consecutive week
Mortgage rates have declined for the second consecutive week, coinciding with a drop in Treasury yields. This trend is being closely watched by investors as they balance interest rate movements against rising trade tensions between the US, Canada, and Iran. The Canadian economy grew 3.3% in the second quarter, and the Bank of Canada is set to make a rate decision on September 2.
Why it matters
The decline in mortgage rates and Treasury yields has implications for the housing market and the broader economy. The Bank of Canada's upcoming rate decision will be closely watched for its potential impact on Canadian mortgage holders. The US, Canada, and Iran are experiencing rising trade tensions, which could influence interest rate trends.
What is confirmed
- Mortgage rates have fallen for the second consecutive week.
- Treasury yields have continued to decline.
- The Canadian economy grew 3.3% in the second quarter.
- The Bank of Canada will make a rate decision on September 2.
Still unconfirmed
- The Bank of Canada may hold interest rates at 2.25% for a sixth consecutive time.
What to watch next
- Bank of Canada rate decision on September 2
- US, Canada, and Iran trade tensions developments
- Housing market trends in response to declining mortgage rates
confidence 85%Sources used for this update (5)
- www.foxbusiness.com — Home Mortgage
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- www.foxbusiness.com — Matthew Kazin
- en.sedaily.com — Samsung's In-House Loans Reshape Home Prices South of Seoul
- www.canadianmortgagetrends.com — Canada’s economy grows 3.3% as exports, investment rebound
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Treasury yields decline as markets await Bank of Canada rate call
Treasury yields continued to fall as of August 24, 2026, following a two-week downward trend in mortgage rates. This decline in yields coincided with slight gains in the S&P 500 and Nasdaq. Meanwhile, mortgage holders in Canada are preparing for a September 2 rate decision from the Bank of Canada, which may result in a sixth consecutive hold at 2.25%. Investors are currently balancing these interest rate trends against rising trade tensions between the United States, Canada, and Iran.
Why it matters
Mortgage rates are highly sensitive to Treasury yields and central bank policy. Previous reports showed the 30-year refinance rate dropped by 16 basis points by August 21. The current volatility affects borrowers trying to time market entries or lock in refinance terms.
What is confirmed
- Treasury yields fell on August 24, 2026.
- The Bank of Canada has a rate decision scheduled for September 2.
Still unconfirmed
- The Bank of Canada may hold its rate at 2.25% for a sixth straight time.
- The 30-year refinance rate dropped by 16 basis points as of August 21.
What to watch next
- Bank of Canada rate decision on September 2
- Further movements in Treasury yields
confidence 80%Sources used for this update (5)
- ca.finance.yahoo.com — Bank of Canada's Sept. 2 rate call could mark sixth straight hold at 2.25% — and mortgage holders need a plan
- consent.yahoo.com — Berkshire Hathaway Hasn’t Done This in Over 3 Years
- www.cnbc.com — S&P 500 rises slightly as yields fall, Nasdaq boosted by chip names: Live updates
- finance.yahoo.com — Stock market today: Dow, S&P 500, Nasdaq hold steady as US-Canada trade tensions heat up
- sports.yahoo.com — 2026 Big 12 Football Season Preview
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Mortgage Rates Decline for Second Consecutive Week
Average mortgage rates fell for the second week in a row as of August 21, 2026. Norada Real Estate Investments reported that the 30-year refinance rate dropped by 16 basis points. While MarketWatch describes the trend as relief for homebuyers, Yahoo Finance notes that rates remain on high ground despite bond market buybacks. These fluctuations create a volatile environment for borrowers attempting to time their entries into the housing market or lock in lower refinance terms.
Why it matters
Mortgage rate movements typically mirror bond market activity. The current trend of declining rates suggests a shift in market expectations or investor behavior. Buyers monitor these changes to determine their monthly payment affordability.
What is confirmed
- Average mortgage rates declined for the second consecutive week.
- Mortgage rates fell during the week ending August 21, 2026.
Still unconfirmed
- The 30-year refinance rate dropped by 16 basis points.
- Rates remain on high ground despite bond market buybacks.
- Mortgage rates reached their highest levels in just over a week.
What to watch next
- Upcoming bond market activity
- New mortgage rate data for the final week of August 2026
confidence 70%Sources used for this update (5)
- Fox Business — Mortgage rates fall for second consecutive week
- Yahoo Finance — Mortgage and refinance interest rates today, Friday, August 21, 2026: Rates stand on high ground despite bond market buybacks
- MarketWatch — ‘Relief for homebuyers.’ Average mortgage rates declined this week — and this is the No. 1 lender of August 2026
- Norada Real Estate Investments — Mortgage Rates Today, August 21, 2026: 30-Year Refinance Rate Drops by 16 Basis Points
- Mortgage News Daily — Highest Mortgage Rates in Just Over a Week