The London and St. Thomas Association of Realtors (LSTAR) says the rate cut brings more certainty to the local housing market.
“There's a lot of people that have their mortgage rates coming up for renewal - so they are going to be watching these rates closely,” said LSTAR Chair Kathy Amess.
She continued, “Interest rates do tie into affordability, so it does make it a little bit more affordable for people…maybe it will prop some people off the fence that have been sort of sitting around and wondering what's going to happen.”
Amess said she believes it boils down to a confidence issue over an issue with the rate.
“I think that there has been so much discussion about interest rate over the last year of so that people are just looking for some sort of indication that things are changing, or maybe inflation is decreasing, so it’s more about the general statement.”
