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Economic Shifts: 5 BOC Rate Cuts in 2024? Higher Fixed Rates On The Way?

February 17, 2024 | Posted by: Matt Broom-Hall

Alberta Mortgage Market Insights
February 16, 2024

Weekly Market Recap: This week, Alberta's real estate sector continues to navigate through an evolving economic landscape, highlighted by the Bank of Canada's strategic shifts and burgeoning optimism in national housing markets. Insights into quantitative tightening and prospective rate cuts provide a nuanced backdrop against Alberta's dynamic housing and mortgage markets.

National Economic Shifts and Their Impact on Alberta
Canada's housing market appears to be on the cusp of change, with the Bank of Canada's cessation of quantitative tightening and predictions of multiple rate cuts in 2024 signaling potential shifts in mortgage affordability and market activity. These broader economic maneuvers could influence Alberta's housing demand, mortgage rates, and overall market accessibility.

What is quantitative tightening and what happens when the Bank of Canada stops it?

Quantitative Tightening Unwound

The Bank of Canada's initiative to roll off assets from its balance sheet, a process started in April 2022, has been a significant move towards stabilizing the post-pandemic economy. This quantitative tightening phase, aimed at curbing inflation without stifling growth, sets the stage for how liquidity and lending rates might evolve in the coming months. For Alberta, this could mean a recalibration of mortgage rates and lending conditions... READ MORE

Calgary Real Estate Resilience

VIDEO: A Shift in Rate Policy

Forecasts by financial analysts suggest the Bank of Canada might cut rates five times in 2024, starting in June. Such a development could energize Alberta's real estate market by making mortgages more affordable, potentially increasing demand for housing across the province. These anticipated rate cuts reflect a broader expectation of easing monetary policy, which could provide a significant boost to both buyers and investors... WATCH VIDEO


Lethbridge's Price Surge

Lethbridge's real estate landscape has echoed Calgary's robustness, with detached homes selling for an average of $399,466, marking a 20.9% increase from the previous year. Even as prices adjusted slightly from December, the annual growth has been substantial, with semi-detached homes and row houses also witnessing significant price jumps... READ MORE

Bond market could nudge fixed-rates skyward, next week feb 2024

Bond market could nudge fixed-rates skyward, next week

competitive forces are playing a crucial role in keeping mortgage rates in check, despite the overarching economic challenges. This competitive environment among lenders is essential for potential homeowners, offering a semblance of stability in mortgage planning. That could all change next week​... READ MORE

Canadians are moving to Alberta in droves. How affordable is the province for homebuyers?

Canadians are moving to Alberta in droves. How affordable is the province for homebuyers?

Alberta is witnessing a significant influx of Canadians moving to the province, drawn by its relative affordability for homebuyers. This trend is reshaping Alberta's real estate landscape, offering new opportunities and challenges for prospective homeowners evaluating the province's housing market. But how affordable is Alberta?​ READ MORE

Looking Ahead:

 with the early arrival of the spring market and current market activities, it's vital for potential homebuyers to get their pre-approvals completed early. This proactive approach enables a 120-day rate hold, offering a strategic advantage before any potential increases in fixed rates next week. Staying ahead with a pre-approval ensures you're setting yourself up for success in Alberta's competitive real estate environment.

Stay informed and ahead of the curve with Alberta Mortgage Market Insights, your go-to source for the latest in mortgage and real estate news across Alberta.

As a top-rated mortgage broker in Alberta, we prioritize staying ahead of market trends and fluctuations. This dedication means our clients benefit from expert insights and strategies tailored to navigate the ever-changing real estate landscape effectively. Our proactive approach ensures you're always positioned to make informed decisions, whether it's locking in favourable mortgage rates or optimizing your mortgage strategy, ultimately providing you with peace of mind and a competitive edge.

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