The Latest In Mortgage News: RBC Downgrades Its Housing Market Forecast

Royal Bank of Canada (RBC) has downgraded its housing market forecast, stating that the country's housing correction is expected to "deepen" in the coming months with resale activity and prices falling more than expected. The bank predicts that home resales will fall almost 23% this year and 15% next year, with the national benchmark price falling a total of 12% "from peak to trough" by the second quarter of 2023. However, RBC economist Robert Hogue adds that the current correction is "historic," and the unfolding downturn should be a "welcome cool-down following a two-year-long frenzy." Affordability remains a top concern for consumers, as prices and interest rates continue to rise. Other news includes the U.S. Fed raising its benchmark rate by 75 basis points, matching the Bank of Canada's current rate of 2.50%, and the Conference Board of Canada's consumer confidence index falling in July, with inflation and affordability concerns top of mind.