Mortgage Rate Forecast – British Columbia Real Estate Association
Long-term Canadian bond yields are falling, which is expected to lead to a decline in fixed mortgage rates in 2024. The Canadian economy slowed in the third quarter, but it is not shrinking substantially. The Bank of Canada is likely to cut rates in 2024, with a forecasted decrease of 75 to 100 basis points by the end of the year and 200 basis points by the end of 2025. Inflation may remain above 2.5% due to rising housing costs and rental market factors.