Higher Interest Rates Continue To Impact Consumer Spending

The significant spike in Canada's key interest rate has already had a considerable cooling effect on Canadian spending and many are bracing for an even more challenging 2023 with no end to rate hikes in sight. A survey by Dye & Durham among members of the online Angus Reid Forum says this year's swift and sustained rise in interest rates has caused 33 per cent of Canadians to delay making a real estate transaction or major purchase. As well, nine per cent say they have delayed buying a house this year, while 10 per cent expect to delay purchasing one in the next year. Sellers are bracing for a shock as well, as 17 per cent of Canadians expect their home will never reach the same value it did prior to 2022's interest rate increases.