December 12th, 2023 Mortgage Industry Update
The Bank of Canada announced on December 6th that its overnight lending rate will remain at 5.00%. The Canadian economy has now entered a period of weaker growth and is continuing to slow. Recent data suggesting economy is no longer in excess demand. The prime rate remains at 7.20%.
Additionally this week:
– Statistics Canada: The economy contracted in the third quarter by 1.1% compared with the previous year. Country’s GDP also fell on a quarterly basis, inching downwards by 0.3%, although it revised its April-to-June figures from a contraction to growth of 1.4%.
– Statistics Canada: Adult children of homeowners were more than twice as likely to own a home compared to the children of non-owners. The report found that children of non-homeowners had an overall homeownership rate of 8.1% vs. 17.4% for the offspring of owners.
– Re/Max: Toronto prices are forecast to drop by 3% in 2024, and even further in Kitchener at 8%, while some cities such as Windsor will see a 7.5% increase. Average home price nationally to increase by 0.5%, and 61% of regions surveyed anticipate unit sales to increase in 2024.
– Money.ca: Toronto is the safest place to live in Canada. Study found that based on the number of offences per 100,000 people, Toronto ranked the safest with only 286.9 offences. Looked at the prevalence of incidents involving arson, burglary, robbery, and impaired driving.
– Canadian home prices likely to decline at a rate twice as large as previously expected, according to TD Bank. Economists now expecting home prices to fall by as much as 10% in first quarter of 2024, up from the 5% prediction in their prior assessments in September and October.
– Bond markets have responded latest inflation numbers by moving up the timeframe for the first Bank of Canada rate cut. TNow pricing in 76% odds of first rate cut by March, and 78% odds of two quarter-point cuts by June. 54% that the Bank will deliver three cuts by September.
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.
