Bank of Canada June 7th Rate Hike

BoC hikes rate another 0.25% on Wednesday.

With core inflation still around 4%, the bank feels that the temporary rate pause is over and will likely remain high for longer than expected.

This is bad news for those with variable-rate mortgages hoping for some rate relief after the tumultuous events of 2022.

The banks have recently been increasing their fixed-rate offerings and will likely continue the trend in line with the current bond yields.

However, this has yet to affect the housing market swing that began in June. In the GTA, year-over-year sales are up almost 25%, even with the current inventory issues.

We will have to wait to see how the bond yields and rate hikes will affect the market.