A new economic report from TD Economics reveals that while Canada\u2019s overall economy is slowing, the Bank of Canada may not cut interest rates as aggressively as once expected. Why? Because the housing market is showing unexpected resilience.<\/p>\n\n\n\n
TD\u2019s quarterly review highlights how global trade tensions and domestic policy shifts are shaping Canada\u2019s economic landscape. Although slower growth is cooling inflation, the Bank of Canada\u2019s policy rate is already within its \u201cneutral range,\u201d meaning dramatic rate cuts are unlikely.<\/p>\n\n\n\n
The report suggests that instead of multiple cuts, the central bank may opt for a more cautious approach\u2014possibly one or two rate reductions in 2025. This is largely due to the housing market already responding to earlier rate moves, showing signs of modest recovery.<\/p>\n\n\n\n
On July 30, the Bank of Canada held its key interest rate at 2.75% for the third consecutive time, following a series of cuts that began in late 2024. Analysts now anticipate a potential rate cut in September, though the central bank remains focused on monitoring global trade disruptions.<\/p>\n\n\n\n
According to TD, Canada\u2019s housing market is gaining momentum\u2014not just temporarily. Home sales have increased for four straight months, and average prices are up 5%. The rebound was delayed by U.S. tariff impacts but is expected to continue into 2026.<\/p>\n\n\n\n
Despite ongoing affordability challenges, TD forecasts a stronger recovery next year. After a 2% dip in sales and flat prices in 2025, the market is projected to bounce back with 9% sales growth and a 5% rise in home prices.<\/p>\n\n\n\n
The Canadian Real Estate Association (CREA) echoes this sentiment, noting that the market is entering its \u201clong-expected recovery phase,\u201d even as it adjusts its annual forecast.<\/p>\n\n\n\n
With housing now a key factor in monetary policy, the Bank of Canada sees less urgency for further rate cuts. The interest rate channel is already stimulating demand, and future decisions will depend on how inflation behaves.<\/p>\n\n\n\n
For mortgage professionals, realtors, and homebuyers, this signals a period of cautious optimism. While affordability remains tight, the market is stabilizing\u2014and opportunities are emerging for those ready to act.<\/p>\n\n\n\n
Mortgage Broker | Centum Financial Services LP<\/strong> \ud83d\udccd 11160 Yonge Street, Richmond Hill, ON<\/em><\/p>\n\n\n\n Helping Canadians finance their dreams\u2014whether it\u2019s a first home, investment property, or refinancing strategy. I specialize in:<\/p>\n\n\n\n Are you a Realtor in Ontario<\/strong> looking to offer your clients trusted mortgage solutions while earning a referral fee<\/strong>? Let\u2019s work together.<\/p>\n\n\n\n I\u2019m Sam Ansari<\/strong>, a licensed Mortgage Broker with Centum Financial Services LP<\/strong>, based in Richmond Hill<\/strong>. I specialize in helping buyers secure the best financing options\u2014whether it\u2019s a first-time purchase, refinance, investment property, or private mortgage.<\/p>\n\n\n\n \ud83c\udde8\ud83c\udde6 Canada\u2019s Housing Market Holds Strong\u2014What It Means for Interest Rates in 2025 A new economic report from TD Economics reveals that while Canada\u2019s overall economy is slowing, the Bank of Canada may not cut interest rates as aggressively as once expected. Why? Because the housing market is showing unexpected resilience. \ud83c\udfe6 Interest Rate Outlook: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/posts\/1529"}],"collection":[{"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/comments?post=1529"}],"version-history":[{"count":1,"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/posts\/1529\/revisions"}],"predecessor-version":[{"id":1530,"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/posts\/1529\/revisions\/1530"}],"wp:attachment":[{"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/media?parent=1529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/categories?post=1529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/samansari.com\/index.php\/wp-json\/wp\/v2\/tags?post=1529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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