Date: April 10, 2024
Category: Blogs,Mortgage Tips & Advice,Newsletter
Let’s break down the latest update from the Bank of Canada (BoC) 🏦:
No Change in Interest Rates: Bank of Canada’s 📉 Latest Announcement: Interest Rates Held Steady 🛑
The Bank of Canada has kept the interest rate unchanged at 5% 💵. This means no change to variable and adjustable mortgage holders.
Let’s break down the Bank of Canada’s (BOC) announcement statement:
- Maintains the policy rate at 5%, with quantitative tightening continuing 🔒.
- Global economic growth is expected at about 3%, with gradual easing of inflation in advanced economies 🌍.
- The U.S. economy shows stronger-than-anticipated growth 📈, while the euro area is expected to recover slowly 🐌.
- A slight increase in global oil prices and overall easing of financial conditions 🛢️.
- Canadian economic growth is forecasted to recover in 2024, driven by population growth, household spending, and business investment 🇨🇦.
- GDP growth projections: 1.5% in 2024, 2.2% in 2025, and 1.9% in 2026 📊.
- CPI inflation eased to 2.8% in February, with a broad-based slowdown in price pressures. Expected to be near 3% in the first half of the year, then drop below 2.5% in the latter half, reaching the 2% target in 2025 🎯.
- Next policy rate announcement scheduled for June 5, 2024, with a full economic and inflation outlook to be published on July 24, 2024 🗓️.
For those of you interested in the full BoC update, click here for the link 🔗
Takeaway for Homebuyers and Homeowners 🏠
Active Homebuyers Advice: There is no 🍪 cookie-cutter advice; it’s not a one-size-fits-all option; however, with the current mortgage rates and the anticipated growth in the housing market, now is the time to buy a home. I’ve heard that the best time to purchase is yesterday and that still holds true today. Yes, rates are above the 3% range. However, it is anticipated that they will be in the 4-5% range for the time being. Remember that when rates go down, buyers come out, and the multiple-offer game is afoot. Get pre-approved and start the search now 🛍️.
Homeowners Up for Renewal: If your renewal is coming up in the next 1-3 years and you still have a rate under 4% we need to talk strategy 🤔. It’s not about having you break your current mortgage of do anything at this point, but it’s about strategy. Let’s look at what that current mortgage may look like on renewal and let’s make a plan to help you get there with ease. .
If you have any questions about mortgages or how this news might affect your financial plans, feel free to reach out!
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To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca
