The Bank of Canada today reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is continuing its policy of balance sheet normalization.
I don’t think this will affect housing, yet. Not much, anyway. This rate decision has already been widely anticipated and fully priced in to mortgage rates. The language used by the BoC sounds very similar, too, so I don’t think there’s any signal to the market that will change expectations significantly.
People on variable-rate mortgages will get a bit of relief, I suppose. But that won’t move the needle much on housing prices.
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I don’t think this will affect housing, yet. Not much, anyway. This rate decision has already been widely anticipated and fully priced in to mortgage rates. The language used by the BoC sounds very similar, too, so I don’t think there’s any signal to the market that will change expectations significantly.
People on variable-rate mortgages will get a bit of relief, I suppose. But that won’t move the needle much on housing prices.
Fully baked in? Bond market dropped quite a bit this week, and .1 just today: