March 26th, 2024 Mortgage Industry Update
The Bank of Canada announced on March 6th that its overnight lending rate will remain at 5.00%. Bank of Canada maintains overnight rate at 5.00%! The Canadian economy looks to be operating in modest excess supply. The Bank continues to expect inflation to remain close to 3% during the first half of this year before gradually easing. The prime rate remains at 7.20%.
Additionally this week:
– Statistics Canada: Number of Canadians receiving unemployment benefits in January rose 18% compared to a year earlier, marking the fourth straight month that it was higher than the pre-pandemic level. On a monthly basis, Canadians on employment insurance rose 0.3% to 468,300.
– RBC subsidiary Houseful: 38% of first-time buyers under 30 are purchasing homes earlier than planned, a contrast to the 18.4% of their over-30 counterparts. This demographic is navigating the market by adjusting their expectations—accepting smaller living spaces.
– Canada’s recreational housing market is expected to rebound this year, according to a new report released by Royal LePage, with prices set to increase by 5 per cent on average in 2024 to $678,930.
– Statistics Canada: National inflation rate dipped to 2.8% in February, marking the second month in a row of declines. Fell by 0.1% compared with January. Analysts surveyed by Bloomberg prior to the release had expected inflation to jump to 3.1% in February.
– CREA: Home sales fell across Canada in February, the first time for three months activity has dipped. Activity ticked 3.1% lower monthly (was 19.7% higher annually), with the national average home price coming in at $685,809 – a 3.5% yearly jump. New listings inched 1.6% upwards.
– Canadians’ household net worth rose 1.8% to $16.42 trillion in the fourth quarter, Statistics Canada said. The increase was driven by a 5% jump in the value of household financial assets, the biggest increase since 2010, outside the pandemic.
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.
