joins RBC<\/a> and other market commentators in the opinion that there will be a rate cut by mid-2020.<\/p>\nThe central bank hasn\u2019t moved its influential rate in well over a year, taking a cautious approach with the hope of avoiding potentially overheating the country\u2019s housing market with a cut or hitting heavily indebted Canadians too hard with a hike.<\/p>\n
Despite the Bank of Canada\u2019s inactivity through 2019, mortgage rates fell anyway, thanks to a global economic backdrop of \u201cglobal growth worries and easier monetary policy\u201d wrote TD economist Rishi Sondhi in the report. But when the central bank finally does make a move this year, it\u2019s unlikely to have a major impact on the country\u2019s housing market.<\/p>\n
Lower rates were a key factor in Canada\u2019s housing market revving back up in 2019. In TD\u2019s outlook, Sondhi wrote that he doesn\u2019t expect them to \u201coffer the same type of support as what was seen last year.\u201d<\/p>\n
Instead, it will be population growth in major urban centres, demand-supporting measures implemented by the federal government and a lack of available housing supply that will have the most pronounced effects on the country\u2019s housing market this year.<\/p>\n
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