Key points:
- Core inflation is stubborn, so I do not think the Bank of Canada is done raising interest rates.
- I expect interest rates to remain fairly high throughout 2023, and to continue to impact the GTA real estate market.
What’s coming in 2023 for interest rates?
In this video, I discuss three predictions for 2023 I think we will see come true, in terms of interest rates and real estate trends. Check out the video for what I expect to see this year.
Don’t feel like watching? Find the full transcript below!
Chris: [00:00:03] Happy 2023. It’s a new year, a fresh start. I want to look deep into my crystal ball and give you my three predictions for 2023.
My three predictions for 2023…
Chris: [00:00:11] Number one, the Bank of Canada, unfortunately, is not done raising interest rates. I predict that they will increase the prime rate another quarter per cent to half per cent early this year. Core inflation is just so stubborn. It’s not going away. And that is going to prompt the Bank of Canada to make that policy change.
Chris: [00:00:29] Number two, Canadian interest rates will remain high throughout the entirety of 2023, so don’t expect a major pivot. Inflation is expected to run high throughout the year, so that’s going to maintain pressure on the Bank of Canada to keep status quo and fixed rate mortgages are going to yo yo as investors try to deal with predicting the future and when a recession will arrive and the severity of that recession.
Chris: [00:00:55] Number three, we expect high interest rates to continue to weigh down heavily on the GTA real estate market. And we expect prices to remain flat throughout the majority of 2023.
Chris: [00:01:07] Unfortunately, I haven’t shared much in the way of good news for 2023. I hope that all three of my predictions are not true. My name is Christopher Molder. I’m a Toronto based mortgage broker. For more great content about where we are headed with the mortgage market and where we’ve been, stay tuned throughout 2023. I look forward to the next one. Bye for now.
Need more help or information?
I’m dedicated to helping my clients navigate the 2023 market successfully. If you’d like to discuss your mortgage, you can contact me here or schedule a convenient call time directly into my calendar below.
