March 28th, 2023 Mortgage Industry Update
The Bank of Canada announced on March 8th that its overnight lending rate will remain at 4.50%. This was the first hold-still since they started increasing rates a year ago. Inflation has started to inch lower. Latest data remains in line with the expectation that inflation will come down to around 3% in the middle of this year. Prime remains at 6.70%.
Additionally this week:
– BILD: GTA new home market saw sales activity decline by 76% annually in February, down to a level 69% lower than the region’s 10-year average. Market saw a total of 922 new home sales last month, the second lowest number of new homes sold in February since tracking began in 2000.
– Statistics Canada: Total population grew by record 1.05M people (first time in history) to 39.57M in 12 months to Jan 1, 2023; 96% of the rise was due to international migration. Helped Canada retain its position as the fastest-growing G7 country. Population growth rate was 2.7%.
– Statistics Canada: Annual pace of inflation cooled in February as it posted its largest deceleration since April 2020. Consumer price index was up 5.2 per cent compared with a year earlier. Lowest annual inflation rate since January 2022 when it was 5.1 per cent.
– Royal LePage report: 62% of individuals that postponed their plans to buy a new home this past year now say they plan to return to the market, and 26% plan to resume their search this spring.
– Sotheby’s International Realty Canada: 49% of urban Canadians anticipating real estate performance to match and even surpass financial investments within 12 months. 60% believe that a residential purchase will perform the same or better over the next 10 years.
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.
