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Wednesday’s announcement marks the first time the central bank remains unchanged after seven consecutive cuts since June.
Ratesdotca mortgage and real estate expert Victor Tran said the current economic environment has not stimulated consumer confidence in large-scale purchases, such as mortgages on homes, and interest rate holdings at Canadian banks have not changed much.
“The entire housing market has been stagnant for months, with the spring market being softer than the silentness of previous years,” Tran said in a press release.
“This state of the housing market is unlikely to continue to change with this interest rate.”
House sales across the country have already begun to decline in the second half of last year, with economists predicting increased activity in 2025, and then these hopes are raised by economic uncertainty caused by the U.S.-Canada trade war.
Penelope Graham, a mortgage expert at RateHub.ca, noted that due to Wednesday’s decision, people with variable rate mortgages will not move the amount of payments or interest payments to them.
“Today’s interest rate holdings will not help, making home buyers increasingly hesitant to enter the market amid tariff uncertainty,” she said.
“In turbulent market conditions, it’s a good idea for those who buy a mortgage or renew their visa, looking for pre-approved to keep today’s rates up to 120 days. This helps prevent short-term interest rate fluctuations.”
Tran said housing market activity could occur if analysts forecasts for the two cuts this year are realized, as this would result in lower mortgage rates.
“Although it’s hard to predict, it’s going to be affected by the broader economic situation because the buying trend will be affected by the broader economic situation, and we haven’t gotten a clear idea of that yet,” Tran said.
Meanwhile, he said that volatility in the bond market has not yet led to significant changes in fixed-rate mortgages, but fixed-rates may increase if bond yields continue to rise.
This report by Canadian media was first released on April 16, 2025.
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Last modified: April 16, 2025
