January 2024- Bank of Canada Rate Update
The Bank of Canada has NOT increased its overnight rate, keeping its rate at 5%, prime rate with most banks remains at 7.20%.
In its statement, the Bank said ” discussion about future policy is shifting from whether monetary policy is restrictive enough to how long to maintain the current restrictive stance…. if the economy evolves broadly in line with the projection we published today, I expect future discussions will be about how long we maintain the policy rate at 5%”.
In short, so long as the inflationary pressures continue to ease, the bank is unlikely to raise rates any longer. While the market may be asking for rate drops starting in April, there is a good chance they will hold off until the June or July announcement.
GREAT NEWS- FIXED RATES ARE STABILIZING AND THE EDMONTON REAL ESTATE MARKET IS STRONG. OUR SPRING MARKET IS SHOWING SIGNS OF AN EARLY ARRIVAL! THE 2024 FORECAST PREDICTS AN INCREASE IN THE AVERAGE SALE PRICE BY 4%.
CBC press release
Bank of Canada Press Release
SHOULD YOU BUY? If you can buy your dream home now, BUY YOUR DREAM HOME NOW! Interest rates whether they are low or high are TEMPORARY. They will change with each renewal at the end of your term so the cost of borrowing will always fluctuate, up AND down. But what is opportunity cost to you if you wait?
Buying a home in any market is a good decision. Get preapproved, get a rate hold in place and live your dream.
The next scheduled BOC meetings FOR 2024 are:
• Wednesday, March 6
• Wednesday, April 10
• Wednesday, June 5
• Wednesday, July 24
• Wednesday, September 4
• Wednesday, October 23
• Wednesday, December 11
