What Lower Interest Rates and Tariff Turmoil Mean for Canada’s Housing Market

What Lower Interest Rates and Tariff Turmoil Mean for Canada’s Housing Market
A housing development is seen in Bradford West Gwillimbury, Ont., on May 25, 2023. Cole Burston/AFP via Getty Images
Matthew Horwood
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While the Bank of Canada lowering interest rates by an additional 25 basis points to 2.75 percent is seen as a good sign for the real estate market, economists warn the rate cut may not compensate for the uncertainty caused by U.S. tariffs.

“In a time of great economic uncertainty, people are being reluctant to make big purchases,” said Kevin Milligan, director of the Vancouver School of Economics at the University of British Columbia.