Will Rate Cuts Make House Prices Go Up?

The Bank of Canada's significant rate reduction aims to support economic growth and manage inflation, but fixed mortgage holders may not see immediate benefits due to already priced-in rate cuts.

Housing demand and prices remain complex, as rate reductions impact supply more than demand, with affordability challenges persisting despite lower borrowing costs.

Recent CMHC policy changes allowing higher insured mortgage caps could expand purchasing power and influence market dynamics, particularly for first-time homebuyers in higher-priced segments.