The mortgage market at the start of 2023 was very uncertain. After a very difficult 2022, buyers and owners are impatiently waiting to see what happens in the next months or until next year.

In 2022, mortgage rates nearly tripled – something that has rarely happened in Canada.

Now that rates are high and inflation seems to be on a downward trend, what can we expect for 2023?

The end of rate hikes in 2023

Following the drastic increase in rates, several financial institutions, including Desjardins, believe that the end of rate increases is fast approaching.

In 2023, expect a more stable mortgage market where rates should not increase or decrease drastically.

It will then be all the more important to take the time to compare mortgage rates from multiple banks or lenders as they each try to attract customers with competitive rates.

If inflation drops considerably over the next year, many are anticipating a possible rate cut towards the end of 2023. 

A slight recession during the year

According to several economists, Canada and Quebec are headed for a short, mild recession in 2023. This is due to the particularly difficult economic context caused by the COVID-19 pandemic, and the major financial assistance granted by the governments.

We must, therefore, remain realistic and expect the market to come rebound gradually, following the evolution of the economic context in the country.

A recession often sounds dramatic, yet it is a common stage in a country’s economic cycle. Recessions are often short-lived.

It will, therefore, be something to watch during 2023.

• Mortgage rate prediction 2023: In our view, mortgage rates will remain very stable in 2023, and the market should not undergo major movements.