The Bank of Canada is responsible for setting interest rates in Canada. Interest rates play a crucial role in the economy, affecting borrowing costs, spending habits, and inflation rates. Recently, the Bank of Canada announced that it would hold interest rates.
Let’s take a closer look at the Bank of Canada's decision to hold interest rates after several aggressive hikes, examine some of the factors that influenced this decision, and discuss why now is a great time to start a Rent to Own Program in Canada.
Why did the Bank of Canada hold interest rates?
The Bank of Canada's decision to hold interest rates steady was likely because they have raised the rates several times in 2022 and they are now seeing signs of inflation coming down. They will likely use this holding period to watch how the economy is adjusting to the massive rate hikes of 2022. It takes several months to see the full impact of rate hikes; therefore, it makes sense that the Canadian government would momentarily pause rate hikes and give the economy time to adjust to the changes.
The central bank said that it has decided to hold its key rate at 4.5 percent based on its assessment of recent economic data. The central bank has made it clear that they are willing to further increase rates depending on how the economy and inflation progress. This hold comes after 8 consecutive increases in 2022-2023. These increases have decreased the property values of homes across Canada, decreased buyer confidence, and turned a sellers' market into a buyers' market in most cities across the country.
How does this impact you as a potential Sprout Properties Rent to Own Client?
This is a great time to buy. If the rate stays the same or goes down then it is likely that consumer confidence will start to increase. This means that people who have been waiting to “see what happens” will likely see this as a time to buy. With housing prices down it might just be the best time in years to get into homeownership. No one has a crystal ball but if rates hold still and people are no longer afraid to buy homes then we suspect that families and investors will see this as an opportunity to buy while the house prices are down before they start going back up.
Reach out for information about the city you want to live in, we can help you determine if right now is the best time to start a Rent to Own in your chosen city!
Comments