November 14th, 2023 Mortgage Industry Update
The Bank of Canada announced on October 25th that its overnight lending rate will remain at 5.00%. There is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures. Supply and demand in the economy are now approaching balance. Prime remains at 7.20%.
Additionally this week:
– Federal government has said that it will be keeping its immigration goal of 500,000 new permanent residents in 2026. Followed several upward adjustments to target over past few years, from just under 300,000 new arrivals in 2015 to 465,000 in 2023 and then to 500,000 by 2025.
– OSFI estimates that $369 billion worth of outstanding mortgages—out of a total mortgage market of $2.1 trillion—currently have fixed-payment variable-rate products. Of those, approximately $260 billion worth have seen their amortization periods soar to 35 years or longer.
– FSRA: Approximately 50% of consumers spend more time researching their last mobile phone purchases than they did their financial services professionals, while nearly 40% spend more time planning their vacations than understanding their mortgages.
– TRREB: GTA saw 4,646 home sales last month, a decline of 5.8% compared with 2022. Average selling price jumped by 3.5% on a yearly basis while the MLS Home Price Index Composite benchmark ticked upwards by 1.4%. TRREB also reported a spike in new listings over last year.
– Environics survey: 44% now agree with statement “there’s too much immigration to Canada,” compared with just 27% last year. Up 17% – largest annual change ever recorded since polling began in 1977. Those who disagree with that statement now make up just 51% – lowest since 1998.
– Statistics Canada: GDP remained largely unchanged in August and likely September. Growth had stayed flat for a second consecutive month. The economy likely shrank at an annualized rate of 0.1% in Q3 according to StatCan’s preliminary estimate.
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.