'Buyers are really excited': Lethbridge realtor reacts to interest rate cut by Bank of Canada

A for sale sign is displayed. (THE CANADIAN PRESS/Evan Buhler)

Lethbridge homebuyers received some good news Wednesday when the Bank of Canada lowered its key interest rate for the first time in four years.

The announcement puts the policy rate at 4.75 per cent, down from the 5 per cent it has been sitting at since July of last year.

The bank began raising its key interest rate in March of 2022, following larger-than-expected inflation numbers that followed a period of pandemic stimulus and disrupted global supply chains.

"We’ve come a long way in our fight against inflation," said Bank of Canada Governor Tiff Macklem, during prepared remarks in Ottawa. "And our confidence that inflation will continue to move closer to the 2 per cent target has increased over recent months."

Courtney Atkinson, CEO of The Atkinson Team at eXp Realty in Lethbridge, says the lowering of the key interest rate is a sign the economy and housing market are both headed in the right direction.

"Our buyers are really excited," he said. "It's increasing affordability, it's getting a lot of people off the sidelines and into action."

Atkinson says he expects to see more people interested in entering the housing market, which could also lead to more people looking to sell as demand increases.

"A lot of folks that are thinking about selling, they're home are now looking more seriously at it, getting requalified and finding out what they're not qualified for, realizing that tightness on inventory we've had over the past few years is going to be loosening up a little bit with those people now bringing their properties to market."

Interest rates are still more than double what they were before the COVID-19 pandemic, but there is some optimism that more reductions are on the way.

The Bank of Canada will review the interest rate two more times before the end of the year.

"TD Economics actually does anticipate up to another two rate reductions before the end of the year," said Steve Ng, District Manager for TD mobile mortgage specialists.

The next rate announcement is scheduled for July 24. 

- With files from Jordan Gowling, CTV National News Producer