Home ownership affordability
High interest rates are making it harder to afford a home. In July 2023, the Bank of Canada increased its interest rate to 5%. This is the highest it’s been since 2001. The bank is raising rates to fight inflation. The idea is that since higher interest rates make loans more expensive, people will spend less and businesses will make fewer investments, creating fewer jobs. Less spending in turn is supposed to help slow down rising prices.
High interest rates are making it harder to afford a home. In July 2023, the Bank of Canada increased its interest rate to 5%. This is the highest it’s been since 2001. The bank is raising rates to fight inflation. The idea is that since higher interest rates make loans more expensive, people will spend less and businesses will make fewer investments, creating fewer jobs. Less spending in turn is supposed to help slow down rising prices.
