BoC Cuts Rates, What Next?
The Bank of Canada lowered interest rates for the second time on July 24th 2024, dropping the benchmark rate to 4.50%. Another cut is likely in September, according to CIBC's Benjamin Tal.
Economic Trends
Tal notes that economic indicators are moving in the right direction. The Bank's dovish tone and a lack of significant data changes make another cut probable unless something big happens.
Mortgage Market Impact
For mortgage holders refinancing or on variable rates, this is welcome news. Lower rates ease borrowing costs, a relief after the spikes from early 2022 to mid-2024.
Economic Trends
Tal notes that economic indicators are moving in the right direction. The Bank's dovish tone and a lack of significant data changes make another cut probable unless something big happens.
Mortgage Market Impact
For mortgage holders refinancing or on variable rates, this is welcome news. Lower rates ease borrowing costs, a relief after the spikes from early 2022 to mid-2024.
Housing Market Dynamics
Low-rise homes continue to perform well due to limited inventory, while the condo market struggles. The recent rate cuts might help boost homebuying activity, especially in the low-rise segment.
Looking Ahead
Expect at least another 50 basis points cut this year. The Fed's actions in the US will influence the BoC's path, with September being a critical month.
Low-rise homes continue to perform well due to limited inventory, while the condo market struggles. The recent rate cuts might help boost homebuying activity, especially in the low-rise segment.
Looking Ahead
Expect at least another 50 basis points cut this year. The Fed's actions in the US will influence the BoC's path, with September being a critical month.
Alexander Gasenko - your trusted Toronto & GTA mortgage broker. Dominion Lending Centres Maple Mortgage Group Independently Owned & Operated — FSRA# 13415
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