In January 2024, Canada’s Consumer Price Index (CPI) stood at 2.9%, a significant drop from 3.4% in December 2023. Experts believed it would only drop to 3.3%, so this was unexpected since US inflation reportedly increased. Most of this decline was brought by the gas industry. Without it, the CPI for January 2024 would be 3.2%. We also saw unusually large declines in related sectors – 23.7% drop in air fares and 3.3% in clothing. If we took out mortgage interest rate increases from CPI, inflation rate would only be around 2%. Mortgage rates accelerated by 27.4% and rental prices grew by 7.7% (even faster than before). Neither Europe, nor the US include mortgage interest rates in their CPI calculations. So considering all this data and the current real estate market, buying a house is a subjective choice. You may either wait till June hoping for a lower interest rate but pay more for a property or you can buy now and pay less in the long-term. While the decision is yours, work with an experienced realtor in Brampton who understands mortgage and how inflation works, legal aspects of home ownership, and is well-aware of the local market. If you’re in the market looking for homes, reach out to Realtor Catherine Nacar. She is a multi-platinum and diamond award winner with a special interest in helping first-time home buyers find good investable opportunities.