Housing market will endure high costs for a while longer: Economist

A TD economist says Canada’s housing market will likely continue enduring higher borrowing costs for more months ahead, even after the Bank of Canada decided to hold its key rate at five per cent.

Francis Fong, a managing director at TD Economics, said in an interview with BNN Bloomberg that he believes that after a quantitative tightening campaign from the nation’s central bank the Canadian economy has reached an “inflection point.”

He said the labour market has “bottomed out” regarding the unemployment rate, as job growth figures have slowed.

Fong also noted that inflation has moved closer to the Bank of Canada’s target rate of two per cent.