Market News: Bank of Canada Announces Key Rate Increase

The state of the Windsor real estate market isn’t a situation unique to our region. Cities and towns from Nova Scotia to British Columbia are seeing similar trends. Locally, our local statistics paint a story that it can be difficult for home buyers and those searching for houses for sale in Windsor to find the right place. Young and first-time home buyers are especially impacted by the rising costs of Windsor homes as it becomes more difficult to buy a home for them.

That is why today's news comes with little shock as the long rumored interest rate increase was made official by the Bank of Canada. The Bank of Canada has raised its overnight target rate by a half-point, bringing it to 1.00%. This represents the Bank’s first 50-bps rate hike since 2000, and again, was fully expected by markets. In its statement accompanying the decision, the Bank said, “With the economy moving into excess demand and inflation persisting well above target, the Governing Council judges that interest rates will need to rise further.” The Bank also said CPI inflation is now expected to average “almost 6% in the first half of 2022 and remain well above the control range throughout this year.” This is the BoC’s second rate hike this year, following a quarter-point hike in March. Banks and other financial institutions are expected to raise their prime rate in the coming days, which will increase rates for variable-rate mortgage holders.

(Tiff Macklem, governor of the Bank of Canada, said that higher interest rates are going to be necessary to bring down high inflation. h/t https://www.cbc.ca/news/business/bank-of-canada-rate-hike-1.6418132)

Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, LaSalle, and Chatham, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!