I have to admit, I'm not sure why the Bank of Canada raised the overnight lending rate today, but they did.
I don't see too much optimism in any Canadian markets right now, at least inflationary optimism anyway.
I doubt if variable rate mortgage interest rate changes will have much impact on the local real estate market, which appears to be trending down in both sales volumes and average prices while listings remain stubbornly high:
The gap between variable and fixed-rate mortgages is narrowing. But it matters not really. Public sentiment is what matters most to this market moving forward. If people overwhelmingly believe prices are falling and the bubble is bursting, the pressure to buy a home will change to "What were you thinking buying a house in this market?" Today's interest rate change will likely only slightly impact sentiment, making people believe affordability is getting worse, not better.
What are you hearing at the water cooler and when you drop your kids at school?