CPI today (inflation rate) 4.41%
Bank of Canada interest rate 4.5%
Buyers should get a mortgage pre-approval now. The Bank of Canada plans to raise interest rates if inflation increases due to the economy picking up momentum, according to a recent article in the Financial Post on May 31. The Fed raised interest rates to slow down the inflation rate, however, with pent-up demand from consumers who are recently able to go out and spend on restaurants, home items, travel and such, prices are rising.
Rising rates will not necessarily reduce demand, or prevent property values from rising, since demand is reaching a peak and people must and are in a position to purchase. However, if a buyer can get a lower interest rate on their mortgage before rates rise in January 2024, this would go along way in reducing carrying costs which may remain high for a while longer.