For the first time in four years, there has been a small drop in interest rates. As John Hua explains, it's welcome news for people with variable mortgages and lines of credit.for the first time in more than four years is being welcomed in Calgary, but experts don’t expect it will have much of an effect on the city’s already hot housing market.
The BOC cut its overnight lending rate on Wednesday by 25 basis points to 4.75 per cent, down from the five per cent it had been sitting at since July 2023.“Prices will probably be inclining with the rate drop,” he told Global News. Prokopchuk pointed out with home prices being as high as they have been for the past couple of years, waiting for an interest rate drop is not always in the best interest of prospective homebuyers.He added he’s had several buyers who waited, only to see prices jump by $20-$30K.“Lower interest rates may help the amount slightly,” Prokopchuk said. “But not enough to accommodate the rise in price.”
He said while the recent rate drop will benefit current homeowners with variable rates, the same can’t be said for those looking to get into the market.‘When rates go down, prices go up’: What’s in store for Toronto amid Bank of Canada cut Phillips said all lower rates do is give people more purchasing power and more purchasing power will put further pressure on sales and prices.“And with housing being at one-month of supply currently. then supply and demand kicks in and everybody pays more for the same thing. If they can afford to buy a house now — buy now. It doesn’t benefit them to wait because as rates go down, prices go up and they end up paying the same.