Inflation and Inflation Expectations Have Reset Lower. Are Mortgage Rates Next?

The Bank of Canada is likely to cut rates due to falling inflation, primarily driven by increasing shelter costs. This move is expected to alleviate mortgage interest costs and stabilize real estate markets. Amidst consumer and business pessimism, further economic slowdown is anticipated, possibly leading the Bank to lower its policy rate to 2.5%-3%. Variable-rate mortgages are advised over fixed-rate ones, and fixed-rate borrowers are urged to review their mortgage terms.