The Globe and Mail reports in its Thursday edition that Bank of Canada Governor Tiff Macklem suggested rental prices in Canada could go down, but this does not mean home prices will drop. The Globe's Rachelle Younglai writes that rental rates for studio condos are already decreasing, and landlords in university cities have seen reduced demand due to fewer study permits for foreign students. Mr. Macklem expects rent prices to come down with lower mortgage rates and an increase in rental supply. The recent interest-rate cuts will help lower mortgage costs. Despite high shelter costs, recent inflation suggests shelter costs are not increasing as rapidly. Mr. Macklem suggested that while shelter price inflation could decrease, he emphasized this does no mean home prices will fall. He mentioned that house prices may even go up slightly as overall shelter price inflation decreases. The typical home price across the country was $724,800 in July, which is 4-per-cent lower than last summer, according to the Canadian Real Estate Association. A summer real estate rush did not occur, even after the BOC cut interest rates in June and July. The five-year fixed mortgages is being marketed with an interest rate of about 4.5 per cent.