Bank of Canada Maintains Mortgage Rate – 4.5%! On March 8th, 2023, the Bank of Canada announced it would maintain its overnight interest rate at 4.5%.
This decision relieved many homeowners, prospective buyers, and those with a mortgage renewal due shortly. Many were anticipating a potential rate hike that could have made it more difficult for them to secure financing.
The Spring Market
As the spring season approaches, many prospective home buyers in London, Ontario, may wonder what the Bank of Canada’s recent decision to keep mortgage rates steady could mean for the real estate market in the coming months. With interest rates remaining at current levels, the spring market in London, Ontario, will likely continue to see an increase in momentum, helping prices stabilize and homes sell faster.
Remember that even though mortgage rates are higher than we have experienced over the past years, prices have also retracted slightly. This means the actual monthly payment amounts today are similar to what you would have been paying in a more competitive housing market.
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It’s Not All Roses
On the other hand, for many people, these rates are still too high, and they will continue to sit on the fence and take a wait-and-see approach to the current economic uncertainty in Canada.
In conclusion, the Bank of Canada’s decision to keep mortgage rates steady is good news for prospective homebuyers and sellers in London, Ontario. Competition for homes may increase, and buyers may need to act quickly and be prepared to make string offers to secure a property. Additionally, if more buyers enter the market, we may see a tightening of the housing supply in the coming months.
As always, working with a knowledgeable and experienced real estate agent can be an asset in navigating the complexities of the current market.
The next scheduled date for announcing the overnight rate target is April 12, 2023.
Elevate Real Estate Group (Brittany Wurfel, Jeremy Odland, Victoria Rowe, & Stewart Blair)
Happy Home Buying or Selling
Want more details on the current market? You can find more information about the current market here: London & St Thomas Association of Realtors.
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