May 21st, 2024 Mortgage Industry Update
The Bank of Canada announced on April 10th that its overnight lending rate will remain at 5.00%. The Bank expects CPI inflation to be close to 3% during the first half of this year, move below 2½% in the second half, and reach the 2% inflation target in 2025. The prime rate remains at 7.20%.
Additionally this week:
– Urbanation: Average asking rent for a home in Canada in April was up 9.3% annually to $2,188, while slight monthly increase was also recorded for first time since January. Annual growth rate was up from 8.8% increase recorded the previous month. Asking rents were up 0.3% monthly.
– Homeowners due to renew their mortgage over the coming years will face steep jumps in payments, according to the Bank of Canada, with median monthly payment increasing by more than 60% for those with a variable rate mortgage. Mortgage defaults remain below 0.5% across Canada.
– TRREB: GTA’s condominium apartment sales increased in the year’s first quarter to 4,747, compared to the same period of 2023 and up 5.3% yearly. New condo listings increased by 23%. The average selling price was $693,754 – 1% less annually.
– Statistics Canada: Country added 90,000 jobs in April, driven by part-time positions, while unemployment rate held steady at 6.1%. Figures beat expectations for gain of 20,000 positions and jobless rate of 6.2%, according to median estimate in a Bloomberg survey of economists.
– The percentage of vacant office space in the City of Toronto rose throughout every quarter last year, closing out 2023 at 17.5 per cent – a three per cent increase from the same period in 2022, and a 13.6 per cent spike from the fourth quarter of 2019.
– CMHC 2024 Mortgage Consumer Survey: 22% said rising interest rates influenced their decision to buy a home sooner than planned, while 13% indicated they delayed their home purchase‒ nearly three times more than in 2023.
– Statistics Canada study shows extent parental wealth plays in homeownership outcomes of their adult children as affordability pressures and housing prices have intensified in recent years. Over 17% of Canadian homeowners born in the ‘90s own their property with their parents.
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.
