MONEY GLOBE XHousing Markets · Lesson 4
Central banks and housing
Rate hikes cool it, rate cuts warm it - with a delay
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In this lesson
Understand how central-bank decisions flow into housing, why the effect is delayed, and what Canada saw in 2022-2024.
Key takeaways
- Central-bank rate decisions flow through mortgage rates to buyers, sales and finally prices.
- Canada's policy rate rose from 0.25% (early 2022) to 5% (July 2023); sales fell and prices eased in many cities.
- Rate cuts from mid-2024 helped activity recover slowly.
- The full effect often takes 6–18 months, partly because many mortgages renew only every few years.
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Next lesson: How governments move the housing market
Educational information only - not financial advice.
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