According to the Bank of Canada, lenders in Canada have begun to effectively stall on rising rates and borrowing rates are rapidly ascending. This stall has reportedly been held for five weeks, consecutively. As a byproduct of this stalling, annual growth is dropping. This phenomenon is rarely seen, despite the years leading up to 2016.

The typical cost of borrowing during a typical week is what is known as the borrowing rate. Composed of consumer ratings and discounts, all collected in an in depth index, the borrowing rates is an important statistic relied on by many. All data is collected from residential mortgage reporting, as well as consumer mortgage reporting. At times the information may also be collected by institutional lenders. When discussing a single posted rate, it is more accurate to state that the index displays what various households are paying. Unfortunately, many people don’t pay posted rates, despite how great they may actually be.

With the cost of borrowing an a near decade high, a stall can be observed. As of February 15, the borrowing rate reached nearly 4%, which is up nearly 15% from the previous year. As of now, this is the fifth week in a consecutive path that has held this borrowing cost. The last time a stall lasted this long at this level was ten years ago, in 2009.

Growth pace at an annual rate can be seen dropping. A statistic of 29.49% lower than the year before is extremely apparent.

After following various irregular weekly stalls, the borrowing rate (effective) is looking as though it is quite exhausted. Many predict that banks don’t like the possibility of falling credit, and that consumers aren’t ready to handle such a rate hike.