Canada housing affordability and market trends

Home buying in Canada has become more challenging due to a pandemic-driven housing boom and inflation peaking at 8.1% in 2022. The Bank of Canada raised rates rapidly from 2022 to 2023, then cut rates nine times by 2025, holding the overnight rate at 2.25% since. Inflation is easing, but geopolitical tensions and trade uncertainties keep rates stable. Fixed mortgage rates have risen above 4% due to higher bond yields.