00000nam 2200000zi 4500 9.944009 CaOODSP 20250821075126 m o d f cr mn||||||||| 241010t20242024onca ob f000 0 eng d CaOODSP eng rda CaOODSP n-cn--- FB3-7/2024-14E-PDF Bouras, Panagiotis, author. Impacts of interest rate hikes on the consumption of households with a mortgage / by Panagiotis Bouras, Joaquín Saldain, Xing Guo, Tom Pugh, and Maria teNyenhuis. [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 1 online resource (i, 13 pages) : illustrations (some colour). text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff analytical note = Note analytique du personnel, 2369-9639 ; 2024-14 "Last updated: June 17, 2024." Includes bibliographical references (page 13). "We combine loan-level data about residential mortgages in Canada with a realistic measure of each household's liquidity situation to assess how much the recent rate hike cycle has affected and will affect mortgage borrowers' consumption through its impact on mortgage payments. Our results indicate that increases in interest rates have reduced the average mortgage borrowers' consumption by 2.8% as at April 2024 and that the decrease is expected to fall further and reach 3.8% in early 2028. These increases reduce mortgage borrowers' consumption for two reasons: their mortgage payments increased during the rate hike cycle, and they will face a higher remaining balance to be paid off in the future. Because a rate hike cycle will increase the total debt burden of mortgage borrowers, the negative effects of a rate hike cycle on mortgage borrowers' consumption will last longer than the rate cycle itself"--Conclusion, page 6. Interest rates Canada Econometric models. Mortgage loans Canada Econometric models. Consumption (Economics) Canada Econometric models. Taux d'intérêt Canada Modèles économétriques. Prêts hypothécaires Canada Modèles économétriques. Consommation (Économie politique) Canada Modèles économétriques. Bank of Canada, issuing body. Staff analytical note (Bank of Canada) 2024-14. (CaOODSP)9.807323 PDF 541 KB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-7-2024-14-eng.pdf