Yesterday the Bank of Canada raised its key interest rate to 0.5%. This was the first time the benchmark rate since 2018.
The Bank of Canada has indicated that this will be the first of a series of small rate hikes this year as part of the bank's strategy to combat inflation which is currently at its highest level since 1991.
For some perspective on how this will impact a variable rate mortgage, a 0.25% increase in your mortgage rate will account for approximately $13 for every $100,000.
The key question is how will this impact the real estate market?
According to CP24 (see link below) Most housing experts believe the overall lack of housing supply coupled with ongoing demand will keep housing prices strong.
The key thing to watch will be how many new listings come on the market as we move farther into 2022. If we continue to see low inventory the market will remain competitive.