January 30th, 2024 Mortgage Industry Update
The Bank of Canada announced on January 24th that its overnight lending rate will remain at 5.00%. Bank of Canada maintains overnight rate at 5.00%! The Canadian economy has stalled since middle of 2023 and growth will likely remain close to zero through first quarter of 2024. Economy now looks to be operating in modest excess supply. The prime rate remains at 7.20%.
Additionally this week:
– Statistics Canada: New home prices were essentially unchanged in December, with prices static or slightly down in 21 of 27 census metropolitan areas. Across the country, new home prices ticked down by 0.9% annually in December.
– New figures from Statistics Canada show that percentage of Canadians working mainly from home has fallen since the height of pandemic, from 40% in April 2020 to about 20% in November of last year. Still a sizeable jump over the 7% who worked mostly from home prior to pandemic.
– A Reuters poll of 34 economists found that two thirds, or 22 of the 34, expect the Bank of Canada’s first rate cut to be in June or later. Meanwhile, all were unanimous that the Bank would hold its benchmark rate at 5.00% last week.
– The Canadian government is limiting a major driver of its recent population growth by capping the number of foreign students. Minister Marc Miller announced a two-year limitation on international student admissions, reducing the number of new study visas for 2024 by 35%.
– Bank of Canada maintains overnight rate at 5.00%! Canadian economy has stalled since middle of 2023 and growth will likely remain close to zero through first quarter of 2024. Economy now looks to be operating in modest excess supply. Prime rate remains at 7.20%.
– Statistics Canada: Investment in building construction posted a 1.7% upswing to reach $19.8 billion in November. The residential sector was a significant driver of this gain, with a 2.2% uptick that pushed the segment’s total to $13.7 billion during the month.
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.
