top of page
Search

Bank of Canada Interest Rate Announcement: Impact on the Real Estate Market - June 6th, 2024



The Bank of Canada (BoC) has announced its latest interest rate decision on June 6th, 2024, maintaining the overnight rate at 4.75%. This announcement holds significant implications for Canada's real estate market. Here’s an in-depth look at what this decision means for homebuyers, sellers, and investors.

Mortgage Rates


The BoC’s decision to keep the interest rate steady directly influences mortgage rates. While fixed mortgage rates are more aligned with bond yields, variable mortgage rates are directly tied to the central bank’s overnight rate. Here’s what to expect:


  • Fixed-Rate Mortgages: Although the BoC’s decision does not directly change fixed mortgage rates, it signals stability which can maintain current rates. Fixed rates have been high due to elevated bond yields, but any signs of easing inflation could stabilize or lower these rates.

  • Variable-Rate Mortgages: Borrowers with variable-rate mortgages will see no immediate change in their payments. However, with the rate remaining at 4.75%, these mortgages continue to be relatively expensive compared to the pre-pandemic era.


Potential Rate Changes


Economists will be closely monitoring economic indicators such as inflation and employment data. Any significant changes could prompt the BoC to adjust interest rates in the future, influencing the real estate market accordingly.

9 views0 comments

Recent Posts

See All

Toronto Real Estate Market Report - Jun 2024

SALES SUMMARY This year’s spring market is proving far from traditional. The uncertainty surrounding when interest rates will begin to decrease has kept buyers hesitant and lacking confidence to re-en

Commentaires


bottom of page