🔍 Recent Bank of Canada Announcement: What You Need to Know

The Bank of Canada (BoC) has maintained its overnight rate at 2.75%, marking the second consecutive pause following a total of 2.25% in rate cuts over the past 10 months.

📊 Key Drivers Behind the Decision

While the decision to hold rates steady was widely anticipated, it reflects a nuanced economic landscape. Inflation remains persistent, particularly due to elevated goods and food prices, which has raised concerns that inflationary pressures may prove more stubborn than expected—even as overall economic momentum continues to ease.

At the same time, the broader economy is showing resilience, avoiding a significant downturn. However, ongoing trade uncertainties—especially those stemming from the U.S.—continue to cast a shadow over growth prospects. For the moment, Canada’s economy remains relatively stable.

📉 Implications for Mortgages and Real Estate

📌 Variable-Rate Mortgage Holders:

• With the BoC holding steady, the prime rate remains at 4.95%.

• There’s no immediate change to variable-rate payments, but the Bank continues to monitor the economic situation closely.

• A rate cut could still be on the horizon in the coming months.

📌 Fixed-Rate Mortgages:

• Fixed mortgage rates have edged lower in anticipation of a potential BoC rate cut before year-end.

• Lenders are adjusting proactively, which may offer a favourable opportunity for borrowers coming up for renewal to lock in a competitive rate.

📉 Real Estate Market Sentiment:

• Buyer activity is currently subdued, though not entirely absent.

• When rates begin to fall, a resurgence in market activity is expected.

• Savvy buyers are moving early, taking advantage of quieter competition ahead of any renewed demand surge.

In May 2025, the Fraser Valley housing market experienced a modest yet encouraging uptick, signaling a potential shift towards a more balanced environment for both buyers and sellers. With inventory levels rising—active listings increased by 6% to 10,626 properties—the market is offering more choices for prospective homeowners. This growth in inventory, coupled with a 7% rise in new listings, suggests a move towards equilibrium, where informed decisions can flourish.

Despite a 22% decline in sales compared to May 2024, the 13% increase from April 2025 indicates a cautious optimism among buyers. The current sales-to-active listings ratio stands at 11%, indicating a buyer's market, yet approaching the balanced threshold. Homes priced appropriately for today's market are finding buyers, reflecting a return to thoughtful, value-driven decisions.

For those considering entering the market, whether buying or selling, this period offers an opportunity to approach real estate decisions with wisdom and discernment. Aligning your choices with your values and long-term goals can lead to outcomes that honor both your financial and personal aspirations.