The Globe and Mail reports in its Thursday edition that the Bank of Canada anticipates increased activity in the real estate market following a recent interest-rate cut and new mortgage policies. The Globe's Rachelle Younglai writes that the BOC's 50-basis-point reduction to 3.25 per cent on Wednesday marks its fifth cut since June, lowering borrowing costs and aiding prospective homebuyers. Recent national sales data show October transactions at their highest in over two years. Starting Sunday, new federal mortgage rules will allow buyers to make smaller down payments on homes up to $1.5-million and enable first-time buyers to extend their loan repayment periods. New mortgage rules and lower interest rates will be implemented before spring, the peak season for real estate sales. First-time homebuyers with insured mortgages can now repay their loans over 30 years instead of 25, resulting in lower monthly payments. On Wednesday Bank of Canada senior deputy governor Carolyn Rogers said it is possible that the federal government's decision to admit fewer newcomers may act as a "counterbalance" on the easier homebuying conditions. She also noted that home sales have increased without a corresponding rise in prices.