Is This The End Of The Rake Hike Cycle For Bank Of Canada
By now I am sure that you have heard the bank of Canada has raised its key overnight interest rate by 50 basis points bringing their new rate to 4.25%.
If you are a current homeowner who has a fixed mortgage, there is no change in your monthly payment and you have nothing to worry about at least when it comes to your mortgage or until time of renewal.
If you have a variable rate you can expect to see an increase in your payments of roughly $28 dollars for every $100,000 of mortgage amount.
Low inventory levels are keeping housing prices pretty stable for the last 2-3 months so unless we see big changes there, we should not see much change in housing prices or maybe a slight decrease.
If you are a home buyer, with the increase in interest rates, your affordability will be unfortunately affected negatively.Even though there is always more negative than positive when it comes to interest rate increases, let’s jump into what we can expect moving forward, as that might bring a light at the end of the tunnel.
After announcing that they will be raising their rate, the bank of Canada finished off by saying that they will be considering if further increases are needed.
This has given many analysts the impression that this may be the end of the interest rate hike cycle.
Off course they also said that future increases will depend on how inflation numbers trend over the next month however this is the first month in the last 7 months that the bank of Canada has not finished their interest rate announcement with the words, “Future rate hikes are necessary to slow inflation” or some sort of version of that sentence.