It certainly seems that way!
However, our certainty will likely improve after the scheduled Bank of Canada announcement on September 6th.
With both consumer confidence levels and spending on the decline, it’s indicative that the Bank of Canada’s rate increases have hopefully come to an end. High interest rates have been a significant source of financial stress for our clients and most consumers, compounded by rising food inflation, which has forced them to be more mindful of their spending. As always, the essentials of having food on the table and a roof overhead take precedence in our thinking and spending habits.
The Waterloo and Wellington areas are among the most affected by these changes. However, Kitchener/Waterloo stands out as one of the most resilient economies.
Here are a couple of recent news articles for a quick overview:
- “Consumer Spending Down in Waterloo Region, Economist Warns of Possible ‘Bigger Slowdown'”
> In July, consumer spending in the region decreased by 5.7% compared to June.
Source: The Record
- “Canadian Consumer Confidence Drops to Near-Record Lows”
> A recent poll found that half of respondents expect the economy to weaken in the coming months.
Source: Financial Post
Another reason for rates to stabilize or decrease is the high percentage of mortgages set to mature in 2024. There’s a possibility that the Bank of Canada might ease the qualifying stress test. In essence, we are now at a juncture where choosing the right mortgage term is crucial to weather any potential financial storms.
Given the circumstances, selecting the appropriate mortgage product depends on your life stage – whether you’re a first-time buyer, a move-up buyer, planning to retire, or already retired. This decision can be somewhat overwhelming.
Mortgage brokers in Kitchener Waterloo can serve as your trusted advisors, equipped with access to a range of mortgage options and plans. The Mortgage Centre KW team is here to assist you. Please don’t hesitate to contact us anytime. Your financial well-being is our priority.
Feel free to make any additional adjustments based on your preferences.
