Mortgage rate increases will diminish interest in real estate: survey

Ahead of a rate decision from the Bank of Canada this week, a new survey from Zoocasa suggests an increase in mortgage rates will further weigh on real estate sentiment.

A survey from Zoocasa published Monday showed 79.1 per cent of respondents said a further increase in interest rates, which are closely tied to mortgage rates, would negatively affect their interest in real estate.

That sentiment was higher than a previous survey conducted by Zoocasa in the spring, when 71.3 per cent of respondents said a rate increase would negatively impact their interest in real estate. 

The increase suggests that “both affordability and real estate market sentiment have deteriorated over the past few months,” Zoocasa said.