Why Does The Bank Of Canada Raise Its Target Interest Rate By 50 Basis Points?
For the sixth time this year, the Bank of Canada recently increased its target interest rate by 50 basis points. How will these rate increases affect homeowners? A recent study by the Manulife Bank of Canada found that 25% of homeowners anticipate having to sell their property if interest rates keep rising. The same poll revealed that nearly one-fifth of homeowners already struggle to make ends meet. Without a doubt, increasing interest rates will have a significant impact on borrowers. Sales activity has slowed down after a more than two-year upswing, prices aren't rising as high as they once were, and the market's unsustainable patterns from the previous few years are waning. Does this indicate that a crash or a strong correction is imminent for the housing market? There are many different perspectives from market analysts on what is happening, but one thing is certain: homeowners are feeling the effects of increased rates. Rising interest rates decrease homebuyers'