September 13th, 2022 Mortgage Industry Update
The Bank of Canada announced on September 7th that its overnight lending rate will increase to 3.25% from 2.50%. The prime rate has increased to 5.45% from 4.70%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The Bank of Canada suggests that they will more than likely continue to raise interest rates as necessary to tackle higher than anticipated inflation rates.
Additionally this week:
– Bank of Canada increases overnight rate to 3.25% from 2.50%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate is likely to go to 5.45%.
– TRREB: Home prices fell in August for a fifth straight month, the longest skid since 2017. Benchmark price for a home dropped 2.8% monthly to $1.12 M. Brings total price decline to nearly 16% since March; biggest five-month drop since the measure started being tracked in 2005.
– TRREB: August sales were down 34% annually, but up almost 15% monthly. Sales for the month amounted to 5,627 compared to 8,549 last August and 4,900 in July 2022. The 34% yearly drop was a lower rate of decline than the previous four months.
– Statistics Canada: Total value of building permits in Canada declined 6.6% in July to $11.2 billion, mainly due to weakness in residential sector; fell by 8.6% to $7.6 billion. Largely driven by Ontario (single-family permits down by 13.9%); outweighed gains in 6 other provinces.
– Statistics Canada: Canada’s economy (GDP) shrank 0.1% in July after four consecutive quarters of growth. Reported the country’s annual economic growth rate for the second quarter was 3.3 per cent — below the federal agency’s preliminary estimate of 4.6 per cent annualized growth.
– Financial Services Regulatory Authority of Ontario: Value of mortgages by private and alternative lenders has increased from $13 billion in 2019 to $22.4 billion in 2021 and the number of mortgages rose from 30,435 in 2019 to 36,568 in 2021.
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.