Housing optimism fades as Canadians brace for higher inflation
Still, 39.21% of Canadians said they are worse off than a year ago, compared with 10.60% who feel better off.
Sentiment is weakest in British Columbia, at 44.52. In Ontario, the reading fell to 48.53 from 52.42.
Among renters, confidence dropped to 48.51 from 54.27 over the same four weeks.
Aled ab Iorwerth, deputy chief economist at CMHC, says rising bond yields, inflation concerns, and trade-related uncertainty are making the outlook for interest rates and housing activity increasingly difficult to predict. https://t.co/mkip7w5Cba
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 6, 2026
What do rising inflation expectations mean for a Bank of Canada rate hike?
Inflation expectations matter because they can fulfil themselves. If households build higher prices into wage demands or bring purchases forward, the central bank’s job gets harder.
Governor Tiff Macklem has warned that moving slowly carries its own cost. “Two things probably have to happen if you’re too slow: One is, you’re going to have to raise rates very quickly,” he said in a recent speech in Halifax.
