Canadians have been impacted by high interest rates for a while now, with 65% believing that lower rates will have a positive impact on their finances, as per Dye & Durham’s Canadian Pulse Report for Q2 2024.
On June 5, the Bank of Canada reduced its overnight rate target by 25 basis points to 4.75%, providing some relief. The next announcement is scheduled for July 24, 2024.
Phil Soper, president and CEO of Royal LePage, welcomed the rate cut, stating that it will likely stimulate homebuying activity and increase home prices in the second half of the year.
Over 80% believe lower rates will make large purchases more affordable
The report revealed that 38% of respondents postponed major purchases due to high interest rates. Of those planning to make a purchase once rates drop, 57% are waiting for significant cuts.
Most Canadians feel that lower rates will make it easier to afford purchases like homes, renovations, and savings, among others.
Other key findings
Many homeowners are considering refinancing their mortgages once rates decrease, especially in Alberta. Renters also see lower rates as an opportunity to enter the housing market.
Young Canadians are particularly optimistic about lower rates making it easier to afford a new home.
Read the full report here.
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