November 23rd Mortgage Industry Update
November 23rd, 2021 Mortgage Industry Update
The Bank of Canada announced on October 28th 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 mid 2022 now, as compared to initially saying late 2022.
Additionally this week:
– CREA: Home sales surged 8.6% in October from the month before, biggest increase since July 2020 when the country was emerging from its first pandemic lockdown. Was second best October on record. Benchmark prices surged 2.7% on the month. Number of new listings climbed 3.2%.
– BNN Bloomberg survey: Half of the homeowners surveyed are doing renovations or are planning to do so in the future. 27% said they have renovated since the pandemic, 20% said they will tackle renovations in the near future and 60% said they were funding the work from savings.
– CAIRP: During Q3, consumer insolvencies decreased by 7.8% on a quarterly basis. This marked most significant quarterly dip since onset of pandemic. Q3 volume amounted to roughly 21,100 Canadians filing. Every region saw a quarterly decrease in consumer filings during this period.
– Rentals.ca National Rent Report: Average rent in October for all property types in Canada was up 1.6% annually to $1,800; first annual increase this year. Toronto has 2nd highest rents in country with average monthly rent in October for 1 bedroom at $2,006 and 2 bed at $2,678.
– Statistics Canada: Total investment in building construction declined 0.7% to $17.5 billion in September, continuing a downward trend that started in May. Residential construction investment decreased 1.6%. However was 21.6% higher than the pre-pandemic value in February 2020.
– Statistics Canada: Inter-provincial migration advanced 55.1% in Q2, totalling just over 123,000 people. Was highest change since Q3 1991. Still below record high of 150,000 in late 1970s. Ontario experienced biggest population decline, with close to 12,000 residents leaving.
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.