January 3rd, 2023 Mortgage Industry Update
The Bank of Canada announced on December 7th that its overnight lending rate will increase to 4.25% from 3.75%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 6.45% from 5.95%. The Bank of Canada suggests that they are now considering whether or not more increases are needed.
Additionally this week:
– Abacus Data poll (commissioned by OREA) suggests 64% of Ontarians put more than 30% of their household budgets into housing. 95% agreed life has gotten more expensive over the last year. 82% of respondents indicated mortgage rates were making it more difficult to purchase a house.
– Statistics Canada: In Q3 Canada saw its greatest quarterly population growth rate (0.9%) since Q2 1957 (1.2%). Population was estimated to be 39,292,355 as of October 1. YTD growth (776,217 people) has already exceeded the total growth for any full-year period since 1867.
– Statistics Canada: Inflation rate fell slightly in November, ticking downwards to 6.8% (from 6.9%) as gasoline prices continued to drop – although rent and food costs increased.
– BILD: Total November new home sales of 1,330 down 74% annually and 65% below 10 year average. Lowest level of new home sales for November since 2000. Benchmark price for new single family homes was $1,741,828 (up 3.7% annually). Condos were at $1,121,906 (up 3.6% annually).
– Statistics Canada: Number of job vacancies across country declined in the third quarter following the record-high levels seen in Q2. Saw a total of 959,600 vacant positions in the three months ending September, falling by 3.3% from the 992,200 level seen during the second quarter.
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.