Well the BOC could care less really what the value of the dollar is seeing as though their number 1 mandate is controlling inflation. There are several other factors that affect the value of the CDN $ vs the USD $, commodity prices being a big one. I would expect rates to gradually rise this year, but not at an alarming rate unless inflation takes hold which many don't predict right now.
As for home prices, I don't think you're going to see much other than prices moving with the year over year rate of inflation once we return to normal interest rates. Until that time, I'm sure you're going to see prices climb while interest rates are still lower than their historical averages.
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