Mortgage experts expect the Bank of Canada's decision to hold the interest rate to add heat to the country's real estate markets. A real estate sold sign is shown in a Toronto west end neighbourhood May 16, 2020. THE CANADIAN PRESS/Graeme Roy
TORONTO – Mortgage experts expect the Bank of Canada’s decision to hold its key interest rate to add heat to the country’s real estate markets.
They say the second consecutive hold since rates started climbing in March 2022 will likely give buyers and sellers more confidence to make a purchase soon.
Victor Tran of mortgage rate comparison website Ratesdotca says he thinks the overnight rate’s hold at 4.5 per cent will send a strong signal to buyers and sellers that rates have hit their peak, which would prompt more sales.
Leah Zlatkin of rival rates comparison site LowestRates.ca foresees the housing market heating up in densely populated regions such as Vancouver and the Greater Toronto Area.
Their predictions come after buyers have sat on the sidelines of most markets for months, even as prices dropped, because rising interest rates are making borrowing more costly.
However, when some real estate boards, like Toronto and Vancouver, reported March sales figures recently, they said they were seeing buyers re-emerge and eye the sluggish market.
This report by The Canadian Press was first published April 12, 2023.
