In its latest rate announcement today, the Bank of Canada has revealed that it will keep its trend-setting interest rate at 0.5 per cent. To many observers, the announcement did not come as a surprise, as there remains significant uncertainty in the global markets, particularly with regard to the new US administration’s policies and how they may impact Canada.
The central bank, which is led by led by governor Stephen Poloz, will be keeping a watchful eye on developments, but remains optimistic about expected growth in the fourth quarter of 2016. Conversely, there’s concern that policy changes south of the border may have a big impact here at home – after all, the US is Canada’s largest trading partner.
The Bank of Canada’s rate impacts the interest rates consumers receive from banks on things like mortgages, lines of credit and more. With the central bank electing to keep the rate as is, this is good news for house hunters as it means that mortgage rates should stay roughly as is.
Even closer to home, the Kelowna real estate market remains very hot, with inventory in slim supply and demand remaining high. With the rate staying as is for now, and Kelowna remaining an amazing place to live, demand should remain very high for the foreseeable future. If you’ve been thinking about listing your Kelowna home, now is a very good time.
If you have any questions about the Kelowna real estate market, please contact us.