January 10th, 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:
– The value of loans secured by housing in Canada continued to go up with a 0.1% monthly uptick and a 9.6% increase to reach $308.9 billion in October, according to filings at OSFI. October’s growth rate was the smallest in nearly two years, last matched in January 2021.
– Nearly 32,000 condo units will be completing construction in the city and surrounding suburbs this year, according to data from condo research firm Urbanation Inc. That surpasses the previous high in 2020, when 22,473 units were completed.
– CIBC: 18% of people surveyed in an annual poll on financial priorities said repaying debt was their number one goal for the new year, while 17% said keeping up with bills was their top priority. Another 14% pointed to growing investments as their main goal for the year.
– Altus Group: Toronto’s office vacancy rate has climbed about 10 percentage points. It was at 4.2 per cent in the fourth quarter of 2019. Today, it’s 14.7 per cent. Vancouver’s rate nearly tripled from 4.1 per cent pre-pandemic to 11.5 per cent today.
– Statistics Canada: Number of job vacancies fell by 4.8% in October to their lowest level since August 2021. Fell by 44,300 to 871,300. There were 1.2 unemployed people for every job vacancy, up from the low of 1.0 in June, but down from 2.0 in February 2020, before the pandemic.
– Statistics Canada: The economy edged up 0.1% in October, outperforming its preliminary estimate that real GDP would remain unchanged for the month. Overall, output grew in 11 of 20 industrial sectors in October.
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.
