With the key rate decreasing by 25 points, questions have come about how it will affect Airdronians. On Wednesday, the Bank of Canada cut its benchmark interest rate by a quarter percentage point, signalling a major shift in the central bank's strategy to control inflation. 

This was the first time the key rate decreased in four years, now sitting at 4.75 per cent. The decrease could positively and negatively affect those wanting to buy a home, according to Tyler Baptist,  a real estate agent with CIR Realty in Airdrie.

"Anybody who's on the sidelines waiting to buy, this is going to give them some confidence that things are on the right track if they were holding off."

The decrease also helps those with a variable mortgage or a home equity line of credit as they are tied to the key rate. So homeowners with the two payment methods will see a bit of savings.

"A bad thing about it is that as you see rates come down, you will more than likely see housing prices go up."

Baptist pointed out this is likely the best time to buy because if the interest rate continues to go down the price of houses will go up and will make up the difference. According to her, Airdrie does not have enough inventory as it is, so that's why prices seem so high right now. With summer almost here though, there usually is a little bit of a slowdown when it comes to buying homes.

"It's still busy, but the peak is typically June. But near the end of June and into July the kids get off school, and people have summer plans and they get a little distracted with other things as well."

September is when the buyers market will get busy again before slowing down for the holidays. While making it clear she is not an expert when it comes to what is happening with the key rate, Baptist is predicting it will continue to go down. 

"I don't think they're (Bank of Canada) going to aggressively lower the rates. But we'll probably see another rate decrease, you know, maybe in the fall."

Canada was the first G7 nation to lower interest rates as part of a global initiative to control inflation.

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