November 15th, 2022 Mortgage Industry Update
The Bank of Canada announced on October 26th that its overnight lending rate will increase to 3.75% from 3.25%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 5.95% from 5.45%. 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:
–About 86 per cent of GTA neighbourhoods were in underbidding territory in October compared to 90 per cent in September, according to digital real estate platform Wahi.
– Statistics Canada: Economy added 108k jobs in October; sudden surge 10x higher than expected that reversed many of job losses and stagnant growth experienced over past four months. Blew away forecasts of 10k new jobs last month, with jobless rate remaining unchanged at 5.2%.
– TRREB: Average selling price was $1,089,428 in October, a 5.7% fall yearly, but an increase of 0.2% monthly. Smallest decline in the seven straight months of price drops, bringing total losses to 18%. New listings down 11.6% to 11,749. Number of sales down 49.1% to 4,961.
– Canada has set a revised goal of 500,000 new immigrants each year by 2025, according to immigration minister Sean Fraser. The immigration plan is anticipating 465,000 people to arrive from outside Canada in 2023, and gradually rising to 500,000 in 2025.
– Statistics Canada: During Q3, residential building construction costs increased by 2.5% and non-residential building construction costs went up by 2.1%. Both of these rates of growth were slower than the pace seen during Q2 (5.3% for residential and 4% for non-residential).
– Statistics Canada: Total value of outstanding residential mortgages at non-bank lenders spiked from $346.6 billion in Q2 2021 to $373.8 billion in Q2 2022. Number of outstanding mortgages at these lenders went up from around 1.72 million loans to just over 1.75 million.
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.