Leo said that if the interest rate remains below the neutral rate, real estate is still a seller's market. And even after interest rates climb to neutral, he says, the market will continue to function well. In many ways, Leo's definition of the neutral rate is very close to the one offered by central banks. (Paul Chiasson/The Canadian Press)Williamson painted a picture of that perfect world in which this theoretical neutral rate is supposed to occur. "The neutral rate would be the short-term nominal interest rate that's consistent with all that."

Source: CBC News June 16, 2022 23:30 UTC