June 13th, 2023 Mortgage Industry Update
The Bank of Canada announced on June 7th that its overnight lending rate will increase to 4.75%. Inflation in Canada increased surprisingly last month along with strong job and GDP numbers. The latest data remains in line with the expectation that inflation will come down to around 3% shortly. The prime rate increases to 6.95%.
Additionally this week:
– BoC increases overnight rate to 4.75%! Inflation in Canada increased surprisingly last month along with strong job and GDP numbers. Latest data remains in line with the expectation that inflation will come down to around 3% shortly. Prime increases to 6.95% likely.
– Angus Reid: 54% of renters and 45% of mortgage-holders are finding their monthly payment for housing tough or very difficult to manage. One year ago, 19% of renters reported it was very difficult, while owners who find their mortgage difficult to manage has risen from 34%.
– TransUnion: Q1 total outstanding debt across all credit types grew by 5.6% annually to reach a new record high of $2.32 trillion. Credit participation also increased by 2.9% annually, pushing the number of Canadians with access to credit up to 30.6 million.
– TRREB: May’s home sales amounted to 9,012, which was up 25% annually and 20% monthly. New listings totalled 15,194, which was down 19% annually. Average selling price hit $1,196,101, which was up 3.5% from April and down just 1.2% from one year prior.
– Zolo’s What Homebuyers Want survey: 62% of respondents prefer single-family homes — far more than those that desire condos and apartments (20%) or townhomes (10%). 71% of respondents looking to escape to the suburbs (44%) or a rural community (27%).
– StatsCan: Credit card debt issued by chartered banks climbed 1.45% to $1.3B in February, marking acceleration for 3rd consecutive month. Non-mortgage loan debt rose 0.4% to $2.8B. On a yearly basis, consumer debt grew 14.5% while balances on home equity loans remained at $170.5B.
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.
