April 9th, 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:
– RE/MAX Canada report found that 90% of luxury housing markets across the country experienced growth in high-end sales, led by Saskatoon with a 57% increase. Montreal followed with a 56% increase, and Calgary with a 52% increase.
– Data from MyChoice, an insurance comparison website, reveals a 7.66 per cent year-over-year increase in Canadian home insurance prices since the year’s onset. The impact of rising home insurance rates will be unevenly distributed across Canada.
– Statistics Canada: The country added 1.3 million people in 2023 (fuelled by immigration), growing at an annual pace of 3.2% – the fastest rate since 1957. The population is rapidly approaching 41 million, a milestone reached just nine months after surpassing 40 million in June.
– CMHC says construction of new homes in Canada’s six largest cities remained stable at near all-time high levels last year. Combined housing starts dipped 0.5% compared with 2022, totalling 137,915 units, as apartment starts grew 7% to reach a record 98,774 units.
– Statistics Canada: Economy grew by more than expected in January, expanding at 0.6%. GDP likely increased by 0.4% in February, meaning that the first two months of the year marked the economy’s strongest growth since 2022. Economists had anticipated January growth of 0.4%.
– Prime Minister Justin Trudeau has unveiled new measures aimed at boosting renters’ right. Would see on-time rental payments contribute towards an individual’s credit score as well as giving tenants more rights in landlord disputes and protecting against so-called “renovictions.”
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.
