The Bank of Canada’s benchmark interest rate is expected to fall back to around 3.00% by the end of 2024, now this is according to a median of responses from market participants. These findings were released in the Bank of Canada’s first-quarter Market Participants Survey, where they surveyed 30 financial market participants between March 9 and 23, 2023. A median of responses expects the Bank of Canada to maintain its policy rate at 4.50% for the remainder of 2023 now before the planning to cut rates in 2024. Most expect rates to fall to 3.50% by the second quarter, and also to continue to fall to 3.00% by year-end. Expectations for the benchmark rate at the end of 2024 range from a low 2.50% to 3.50%.. Given variable rate mortgages today are around 6% - this would mean you could see your variable rate mortgage drop to 4%-5% range next year. It is true that a decrease in interest rates can lead to an increase in house prices, as lower interest rates make it easier and more affordable for people to borrow money to buy homes. With lower mortgage rates, homebuyers are able to borrow more money or have lower monthly mortgage payments, which can increase demand for housing and drive up prices.