June 29th Mortgage Industry Update
June 29th, 2021 Mortgage Industry Update
The Bank of Canada announced on June 9th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until the later half of 2022 now, as they observe the country’s faster than expected recovery from COVID-19.
Additionally this week:
– Rentals.ca National Rent Report: The average asking rent for all Canadian properties in May grew by 2% month over month, representing the first increase after six straight months of declines. This upward movement placed the average rent at $1,708.
– Statistics Canada: Canadians took out almost $18 billion worth of new mortgage debt in April, the fastest monthly increase on record and enough to bring total housing debt to almost $2 trillion. Total mortgage debt in Canada has grown by 7.8 per cent in the past year.
– Leger Canada survey: 31% of respondents said they are considering relocating as a result of the pandemic, with over one third of these considering moving to a semi-rural or rural location.
– Teranet-National Bank Composite House Price Index: Canadian home prices accelerated 2.8% in May from the previous month, posting the largest monthly rise in the history of index. 3rd consecutive month in which all 11 markets of the composite index were up from the month before.
– Statistics Canada: Population rose by 0.2%, or 82,366 people, in Q1 to 38.1 million. Fastest quarterly population growth since the pandemic hit, and reflects a rebound in international migration. Quarterly growth averaged just under 0.3% in the decade before the pandemic.
– Statistics Canada: National inflation rate has reached a decade-high of 3.6% in May, owing to the accelerated growth of costs in shelter, energy, passenger vehicles, and consumer goods. The reading slightly exceeded analysts’ expectations of an increase to 3.5%.
– CREA: National home sales fell 7.4% in May (56,156) from April (60,638), after 11% drop in April. Benchmark prices up 1%, though it was the slowest monthly price gain since June of last year. Predicting 2021 will see transactions rise 23.8% annually to 682,900.
Stay tuned for the next update!
For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.