Rate cut not enough to get most Canadians off housing market sidelines

By Craig Lord
Global News
June 11, 2024
Category: Finance & Economics
Region: Canada

The first interest rate cut from the Bank of Canada in more than four years will not be enough to help most prospective homebuyers feeling sidelined by high borrowing costs, new polling suggests. The Ipsos poll conducted after the Bank of Canada’s 25-basis-point rate cut on June 5 shows pessimism about housing affordability persists. The central bank’s policy rate is a key input into housing costs, affecting both the size of mortgage Canadians can qualify for and the amount they pay on a monthly basis. Just over six in 10 respondents (63%) to the polls said they’ll remain on the sidelines. …Though the Bank of Canada kicked off its easing cycle last week and suggested there could be more interest rate cuts in the cards this year, rates remain at elevated levels. …The Bank of Canada’s next interest rate decision is set for July 24.

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