“Jumbo” News: Interest Rates Drop to 3.75%

“Jumbo” News: Interest Rates Drop to 3.75%

The Bank of Canada has just made a big move, slashing the benchmark interest rate by a half-point to 3.75%. This is the fourth rate cut in a row, as inflation cools off, dropping to 1.6% in September – the lowest we've seen since early 2021.

What This Means for Winnipeg Homebuyers

With rates falling, there's a boost in confidence among folks looking to buy their first home. A recent RE/MAX survey showed that 25% of Canadians are actively saving up and feeling optimistic about buying soon. The majority of these potential first-time buyers are young, between 18 and 24, which is great to see. Lower rates make borrowing cheaper, giving buyers more wiggle room and more options.

For current homeowners, though, the story might be different. About 14% of Canadians facing mortgage renewal are worried they might need to sell their homes soon, especially if they locked in at higher rates. But if you're considering buying a home here in Winnipeg, now could be the right time. With inventory up and prices still below their peak, there are more opportunities to find a great deal.

How Long Will These Conditions Last?

Experts say that we might see a shift come spring. For now, it's a window of opportunity, but no one can say for sure how long these favourable conditions will stick around. The fall season is shaping up to be a sign of things to come as we look ahead to 2025. Buyers are starting to come back to the market, but a bigger move from the Bank of Canada could help things pick up even more.

Key Dates to Watch for Interest Rate Announcements in 2024

The Bank of Canada updates its interest rate eight times a year. Here are the dates for next year:

  • Wednesday, January 24

  • Wednesday, March 6

  • Wednesday, April 10

  • Wednesday, June 5

  • Wednesday, July 24

  • Wednesday, September 4

  • Wednesday, October 23

  • Wednesday, December 11

If you’re thinking about buying or selling a home in Winnipeg, or just want to chat about how these changes might affect you, reach out. I’m here to help you navigate the market and find the best options for your situation.

Andy Kloppenborg, REALTOR®
Your Winnipeg Real Estate Expert