We’ve had 8 consecutive interest rate hikes since the beginning of 2022.
This week the Bank of Canada announced they are keeping their key interest rate at 4.5%, just a little over a year from today we were at 0.25%
I am sure those with variable-rate mortgages will be happy to know that their interest rate won’t continue to rise, at least for now.
The Bank of Canada decided to touch the overnight rate today but made it clear that they are prepared to continue hiking rates depending on Inflation and economic progress but for now, they will see how things play out.
Interest rates are higher today than a year ago but sellers are still reluctant to sell their homes for fear of not obtaining the value they want. On the other hand, buyers are gaining their confidence back and maintaining the interest rates could increase the number of buyers in the market and in turn a need for more sellers to return to the market to serve the demand.
There’s still a lot of work to be done. All economic and financial outlooks are very limited and most often not very accurate. Only time will tell how everything will play out.
We are sure that eventually, interest rates will come down but when will that day come? Who really knows? Let’s not celebrate too early.