April 18th, 2023 Mortgage Industry Update
The Bank of Canada announced on April 12th that its overnight lending rate will remain at 4.50%. This was the second hold-still since they started increasing rates a year ago. Inflation has started to 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:
– BoC holds overnight rate at 4.50%! Second hold-still since started increasing rates year ago. Inflation has started to lower. Latest data remains in line with expectation that inflation will come down to 3% in the middle of this year. Prime remains 6.70%.
– Equifax: Total consumer debt continued to rise in Q4 2022, reaching $2.37 trillion; 6.2% yearly increase. Average of $21,000 per person, up 2.1% yearly. Mortgages make up about 75% of total consumer debt. The credit agency reported a 5.4% year-over-year rise in non-mortgage debt.
– Mortgage activity as of the fourth quarter was down 38.5% year-over-year, according to data from Equifax. The slowdown was even more pronounced in the country’s priciest real estate markets of Toronto and Vancouver, where originations are down 44.3% and 52.3%, respectively.
– Statistics Canada: Economy added 35,000 jobs in March amid strong population growth, keeping the unemployment rate steady at near record lows, even as economy wrestles with high interest rates. Population grew by 0.3 per cent last month, while employment rose by 0.2 per cent.
– As painfully long wait times continue to plague the Landlord and Tenant Board, Ontario government announced it will invest $6.5M to hire dozens of new employees to help clear backlog. Will go towards appointing an additional 40 adjudicators and hiring 5 back office staff members.
– TRREB: GTA home sales totalled 6,896 last month. Marks a 44% increase from the 4,783 home sales seen in February. Compared to March 2022, when market’s comedown first began, sales slumped 36.5% yearly. New listings, of which there were 11,184, were down 44.25% on a yearly basis.
– Despite sinking to a 14-year low in January, Canadian home sales are poised to make comeback. New report by TD Economics states sales “appear to have reached a trough” and forecasts quarterly gains for remainder of 2023. Sales expected to pick up momentum in latter half of year.
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.