Canada housing affordability and market trends

Home buying in Canada has become more challenging due to a pandemic-driven housing boom and inflation spikes. The Bank of Canada raised rates sharply from 2022 to 2023 but has since cut rates nine times, holding the overnight rate at 2.25%. Inflation is expected to ease toward the 2% target, reducing the likelihood of further cuts. Elevated bond yields, influenced by inflation and geopolitical risks, keep fixed mortgage rates high.