BCREA: Mortgage Rate Forecast June 2022
BCREA has released it’s latest mortgage rate forecast. To summarize their report:
- In the last report BCREA forecasted that the 5 year fixed mortgage rates would reach 4% later in 2022. Instead they are at 4.69% to battle inflation.
- Bond markets expect very aggressive Bank of Canada.
- Expecting the 5 year fixed mortgage rate to reach 5% which is the first time since 2009.
- Current Buyers currently qualified at a rate of 6.49% with it likely going up to a 7% qualification soon. This has not been seen in the Canadian market since the early 2000’s.
- Bank of Canada’s main focus is to lower inflation at this time.
Economic Outlook
- Growth in the first quarter of 2022 was 3.1%.
- Likely will see a slow down in growth due to inflation.
- Growing concern that 2023 will see a recession but indicators suggest the economy is not currently in a recession.
Bank of Canada Outlook
- The ultimate end for interest rate increases will depend on the trajectory of inflation over the next few months.
- Some see signs of inflation peaking while consumer and commodity prices continue to rise.
Full Report is included below or download the PDF here.
Click here to visit to BCREA’s website. To view other statistics for the Kamloops and BC real estate market click here.
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