The last eight Bank of Canada interest Rate announcements have brought higher rates, along with pain for plenty of borrowers. With the next interest rate announcement scheduled for Wednesday, March 8 at 10:00 AM ET, senior bank economists are predicting – at last – a pause in rate hikes. The current overnight rate sits at 4.50%. Variable mortgage holders and those up for renewal are quietly breathing a sigh of relief.

How will the latest Bank of Canada interest rate announcement affect mortgage rates?

From our latest Mortgage Rate Outlook, look for fixed mortgage rates to rise, with variable rates to hold steady. To view the latest mortgage rates updated daily from banks and mortgage brokers, bookmark our rates page.

As of today, variable mortgage rates are higher than fixed mortgage rates. With inflation slowing down, most mortgage lenders, including the big 5 banks, are predicting that rates are likely to go lower within the next 5 years.

Despite the slowing economy, unemployment rates remain low. This economic data is likely leading to delays in the anticipated interest rate cuts from the Bank of Canada. Our long term rate outlook has now reverted back to 4.00% as of our March Morgage Rate Outlook. In the chart below, you can see how our 5-year variable rate forecast has changed over time based on the Bank of Canada interest rate announcements.

According to CREA's most recent report, Canadian home sales activity in January 2023 was down 3% month-over-month and reached a 14-year low. Meanwhile, the number of newly listed properties rose 3.3% month-over-month compared to December, led by increases across British Columbia, which aligned with our earlier predictions. However, despite the slight bump in listings, inventory remains historically low.

Where will mortgage rates be in 2024?

According to financial models by Alex Leduc, Principal Broker at Perch, 5-year variable mortgage rates should start dropping in early 2024.

Will mortgage rates go up in the next 5 years?

Based on our latest Mortgage Rate Outlook, expect 5-year variable mortgage rates to start dropping in 2024 and continue doing so into 2025. We'll be updating our mortgage rate forecast after every Bank of Canada interest rate announcement – you can subscribe to our mortgage rate forecast for free.

What is the Bank of Canada interest rate today?

The current Bank of Canada interest rate sits at 4.50%, with a 0.25% rate hike announced on January 25, 2023.

When is the next Bank of Canada interest rate announcement?

The next scheduled Bank of Canada interest rate announcement is Wednesday, March 8, 2023 at 10:00 AM ET.

What are the remaining interest rate announcement dates in 2023?

There are a total of 8 Bank of Canada interest rate announcements each year. The remaining dates are as follows:

• Wednesday, April 12, 2023
• Wednesday, June 7, 2023
• Wednesday, July 12, 2023
• Wednesday, September 6, 2023
• Wednesday, October 25, 2023
• Wednesday, December 6, 2023

The Bank of Canada typically makes their interest announcement at 10:00 AM Eastern Time.

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