The Globe and Mail reports in its Saturday edition that since late October, Canadian bank stocks have rebounded 39 per cent. The Globe's David Berman writes that they have outperformed the S&P/TSX Composite Index by 13 percentage points over the same period as inflation subsided and economists grew more confident that a U.S. recession could be averted. Over a 21-month period during 2022 and 2023, bank stocks declined more than 30 per cent, on average. Canadian Imperial Bank of Commerce, the big bank most exposed to the housing market owing to the large share of mortgages on its balance sheet, has rebounded 74 per cent from its 2023 low. The stock hit a record high this week. The rally in Canadian bank stocks appears largely related to subsiding inflation, which has spurred rate cuts and the hope that lower borrowing costs will ease the burden on indebted consumers. Ottawa's fresh approach to mortgage rules is something else: If it encourages more home buying, investors will have compelling new reason to stick with the banks. Home buyers can put down as little as 5 per cent on the first $500,000 of the purchase price. CIBC closed Friday at $82.78, down $1.08 on the Toronto Stock Exchange.