February 6th, 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:
– CREA revealed that, between December 2022 and December 2023, benchmark home prices in 42 out of the 56 housing markets tracked by the group gained ground.
– Housing Minister: Post-secondary institutions will be able to apply for low-interest loans to build student housing starting this fall. Government is tweaking an existing program for low-cost financing to build residences on and off campus.
– Amidst the ongoing debate surrounding soaring housing costs, Bank of Canada governor Tiff Macklem has said the newly introduced cap on international student enrolments could offer respite from escalating rent prices.
– BILD: 19,252 newly built homes were sold in GTA during 2023 — more than 6,000 fewer homes than in 2022 and the lowest number since 1995. Sales of newly built single family homes were up 34% annually in 2023, with 5,869 sales. Condo sales fell by 36% compared to 2022 with 13,383.
– Valour Group survey: Over 75 per cent of real estate investors own property in addition to their primary residence. When it comes to making real estate or publicly traded stock investments, 87 per cent of respondents were more comfortable with real estate investing.
– New data from Statistics Canada showed that since 2022, households aged less than 35 years managed to cut down their average mortgage debt by 5%, compared to a 1.3% increase seen across all households.
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.
