India, April 6 -- The ongoing Middle East conflict is driving up fixed mortgage rates in Canada as oil price surges and inflation fears push bond yields higher, leaving 1.4 million households facing renewals in a tougher market, CBC News reported.

Five-year fixed rates hit 4.95% by April 2 from near 4% weeks prior, with three-year at 4.59%, while variable rates averaged 4.2%.

Canada Mortgage and Housing Corporation (CMHC) estimates 23% of mortgages renew by year-end, many from 2021's low rates.

NerdWallet Canada's Clay Jarvis explained to Global News that investors fleeing inflation fears raise U.S. Treasury yields, which Canadian lenders mirror.

Canada Mortgage and Housing Corporation (CMHC) estimates 23% of mortgages renew by year-e...