Bank of Canada Holds Prime Rate at 2.75% — What It Means for Buyers in the Fraser Valley Real Estate Market

The Bank of Canada announced today, July 30, 2025, that it will hold the prime interest rate steady at 2.75%. This marks the third consecutive rate hold, signaling a shift toward stability after over a year of aggressive rate hikes. While economists continue to monitor inflation and global trade impacts, the hold offers an important signal for those navigating the real estate market in South Surrey, White Rock, and the Fraser Valley.

Why Did the Bank of Canada Hold the Rate?

Trade and Global Pressures

Ongoing uncertainty in global trade, particularly related to recent tariff changes in the United States, is influencing the Bank's cautious approach. Higher import prices could reignite inflation, so the Bank is taking time to assess longer-term impacts.

Economic Resilience

Canada’s economy continues to show strength, with steady employment rates and consumer spending. This resilience gives the central bank the flexibility to pause further rate changes while watching for sustained inflation progress.

Core Inflation Still Above Target

Although headline inflation has cooled to 1.9 percent, core inflation remains higher at 2.5 percent. The Bank is aiming for sustained movement toward its 2 percent goal before making any cuts.

Impact on the Fraser Valley Real Estate Market

Renewed Confidence for Buyers

Stability in interest rates helps restore confidence among buyers who were previously hesitant due to rapid rate changes. A third consecutive hold suggests we may be entering a more predictable lending environment.

Potential for Lower Fixed Mortgage Rates

Fixed mortgage rates often move ahead of Bank of Canada decisions. With inflation trending downward and future cuts likely, buyers could benefit from more competitive mortgage products in the months ahead.

Residential Investment Set to Improve

The Bank of Canada expects a recovery in residential investment in the second half of 2025. This includes increased home sales, new construction, and more activity in the resale market across British Columbia.

A Window of Opportunity for Buyers

Right now, market conditions in South Surrey, White Rock, and Langley are leaning in favor of buyers. Inventory levels remain elevated, and sellers are increasingly motivated. Combined with the possibility of falling rates in the near future, this creates a rare chance for buyers to act before demand intensifies.

If you are a first-time buyer, planning to upsize, or exploring an investment opportunity, today’s rate announcement supports a more confident and strategic approach to entering the market.

Your Local Real Estate Expert in the Fraser Valley

Understanding how interest rates affect home prices, affordability, and long-term investment value is critical in today’s market. As a trusted local Realtor, I provide personalized guidance based on market trends and financial conditions so you can make informed decisions with confidence.

Whether you are buying, selling, or just exploring your options, I am here to help.

Omeed Ghafori
Realtor® | Century 21 Coastal Realty
Serving South Surrey, White Rock, and the Fraser Valley
778-316-7506
www.OmeedGhafori.com