“It was really a PR exercise basically saying, ‘We are moving, without moving. We are not moving, but we are going to move. So, be ready for higher interest rates’,” Benjamin Tal, deputy chief economist at the Canadian Imperial Bank of Commerce, told the Financial Post. “That’s the message as far as the housing market is concerned.”
Tal said that he could see some stragglers jumping into the market now to lock in a lower rate, but that variable rate holders would only see three months benefit at most.Article contentRoyce Mendes, managing director and head of macro strategy at Desjardins, also said he did not expect the same intense wave of Canadians flocking to their mortgage brokers that the market saw last year since many have already gotten in ahead of prospective rate increases.
“There’s been a pulling-forward of activity to get ahead of increasing rates for some time now,” Mendes told the Financial Post. “That actually began toward the end of last year, people were anticipating rate hikes were coming and that higher interest rates in general were coming, and people were pulling forward some activity in the housing market.”
Since the central bank lowered interest rates to historic lows in 2020, Canada’s already hot housing market has seen a frenzy of buying that has helped drive the national average home price to a new all-time high of
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