The decline in retail sales was driven by a combination of factors, including high interest rates, inflation, and a weakening Canadian dollar. These factors have created a challenging economic environment for consumers, making it difficult for them to make large purchases. High interest rates have made borrowing money more expensive, which in turn has reduced consumer spending.

This statement highlights the connection between consumer spending and mortgage rates. Let’s delve deeper into this relationship. **The Impact of Mortgage Rates on Consumer Spending**

Mortgage rates are a significant factor influencing consumer spending. When mortgage rates rise, consumers tend to tighten their belts and cut back on discretionary spending.