After seven straight interest rate cuts, the Bank of Canada decided Wednesday, April 16, to stay the course.

The Bank’s policy interest rate will remain 2.75%—marking the first time in more than a year the interest rate didn’t move.

Canadian homeowners and potential buyers have been benefiting from a stream of rate cuts that helped make buying a home more attainable, and made payments less expensive for those on variable mortgages. At the beginning of April 2024, the policy rate was 5%.

“The major shift in direction of U.S. trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations,” the Bank of Canada explained in its media release. “Pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally.”

Why did the Bank of Canada keep the same rate?

To put it simply, uncertainly. Tensions are high when it comes to international trade. Currently, the global economic outlook is being greatly impacted by U.S. President Donald Trump’s actions.

Tariffs on goods like steel, aluminum, and vehicles are driving up costs, while ongoing negotiations and sudden reversals make it tough to predict what’s coming next.

The Bank of Canada is taking a careful approach, balancing the recent strength of the Canadian economy with concerns about how these trade disruptions could affect jobs, prices, and growth.

In its Monetary Policy Report, the Bank outlined two potential scenarios as to what may happen next:

• Trade tensions ease slowly, and the economy rebounds by late 2026; or

• A long-lasting trade war pushes inflation up and leads to a Canadian recession.

Why should home buyers care about the Bank of Canada’s pause on interest rates?

Just because there wasn’t another rate cut, doesn’t mean you have to curb your home buying plans. In fact, rates remain historically low and this pause could signal the cost of borrowing may be stabilizing (for now).

If you’ve been waiting to lock in a mortgage or refinance, now might be a good time to take a closer look. A REALTOR® can help you determine your next steps.

Fixed mortgage rates, which are tied more to long-term bond yields, may also level out—but they’ll still be influenced by inflation expectations and global financial conditions. According to the Mortgage Qualification Tool on REALTOR.ca, five-year fixed rates are starting at 3.87%, as of April 16.

How will the Bank of Canada’s pause affect housing markets?

The latest data from the Canadian Real Estate Association (CREA) suggests Canada’s housing markets won’t rebound as much as originally planned. CREA revised its 2025 forecast and is now accounting for 50,000 less home sales in 2025 than originally forecast (totaling 482,673 residential properties—virtually unchanged from 2024) and the average price of a home to be $30,000 less than originally forecast (hitting an average of $687,898 in 2025).

Essentially, the status quo seems to be the story until the U.S.-Canada trade war is resolved, but even then, it could be months before consumer confidence is restored and normal housing activity resumes.

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SOURCE AND FOR MORE INFORMATION: Bank of Canada Pauses Rate Cuts—How Homeowners and Buyers Are Affected