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 July Rate Update: Stability on the Island

If you are keeping an eye on your budget while house hunting in Greater Victoria this summer, the word for July is stability.The Bank of Canada is holding its policy interest rate steady at 2.25%. Because inflation and job numbers have thrown a few mixed signals lately, the central bank has entered an economic stalemate—growth is soft enough to stop them from raising rates, but lingering energy inflation is keeping them from cutting further. Here is where local numbers stand right now:
  • Variable Mortgage Rates: With the policy rate steady, the bank prime rate remains anchored at 4.45%. This keeps 5-year variable rates hovering around 3.40% to 3.50% for well-qualified buyers.
  • Fixed Mortgage Rates: Government of Canada 5-year bond yields are holding around the 3% mark, keeping competitive 5-year fixed rates right around 3.95% to 4.09%.
What to watch next: Mark Wednesday, July 15 on your calendar. That is the Bank of Canada’s next rate announcement. While markets project a 94% probability of another hold, their commentary will give us a massive clue about where rates are headed for the rest of the year. With Victoria’s inventory sitting at healthy, balanced levels, you have a rare window this summer to lock in a pre-approval rate and take your time shopping.Want to see exactly what your purchasing power looks like before next week's announcement? Reply directly to this email—I'm happy to connect you with a great local broker!