April 11th, 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:
– TRREB: Average home price in the GTA ticked above the average list price for the first time since May 2022. Average price hit $1,108,606 last month compared with $1,096,519 the month before. However still down almost 15% from $1,298,666 last March which was close to record high.
– Ipsos poll: 63 per cent of Canadians who don’t own a home have “given up” on ever owning one. Figure is similar to a similar poll conducted a year earlier. The findings also show that 76 per cent of respondents felt that owning a home was the best investment a person can make.
– Statistics Canada: Value of residential building permits in Canada rose 7.9% in February to $6.6B. Permits were issued for 22,900 new units. Permits jumped 8.6% from January. Overall increase was driven specifically by large gains in both Ontario (+10.7%) and Alberta (+25.6%).
– RE/MAX Canada report stated that even if luxury sales in Q1 2023 did not reach the peak levels seen in Q1 2022, activity was on par or ahead of Q4 2022 figures in 10 of 15 Canadian markets surveyed by the firm.
– In the first quarterly reports since the Bank of Canada declared a conditional rate pause, both businesses and consumers see the economy heading to a mild recession in the next 12 months, with wage expectations still elevated amid a tight labor market.
– BNN Bloomberg survey: Canadians who are renewing their mortgage or buying a home are increasingly concerned about their ability to qualify for the mortgage they need. 47% said they are concerned about being able to qualify, 16% saying they are very concerned.
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.
