With no increase in the overnight lending rate it leaves Variable Rate Mortgages at a low of 2.25% as of today. The low carrying cost of $382/mth for every $100k in financing (30 yr amortization) is keeping a lot of people in the market to buy a home.
With inflation at a comfortable range it and our dollar being high, it looks like there will not be a lot of pressure to aggressively increase rates.
Although the Overnight rate will eventually start to climb, the government probably doesn’t think it will go up too much as this is most likely why they tightened mortgage lending rules for the 2nd time in less than a year.
Expect a strong spring and summer market in the real estate market!
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