June 11th, 2024 Mortgage Industry Update
The Bank of Canada announced on June 5th that its overnight lending rate will be cut to 4.75% from 5.00%! Officially the first rate cut in over 4 years! Recent data has increased confidence that inflation will continue to move towards the 2% target. The prime rate decreases to 6.95% across lenders.
Additionally this week:
– Capgemini’s World Wealth Report: Globally wealth of high networth individuals grew 4.7% last year to reach $86.8T and their numbers grew 5.1% to 23 million. Canadians’ fortunes grew as well, with high networth individuals gaining 3.8% and population of wealthy increasing 3.6%.
– TRREB: Home sales in May down 21.7% annually. 7,013 homes changed hands in the month compared with 8,960 in May of last year. Average selling price in Greater Toronto Area was down 2.5% yearly to $1,165,691. New listings jumped 21.1%, with 18,612 properties put on the market.
– The Bank of Canada cuts overnight rate to 4.75% from 5.00%! Officially the first rate cut in over 4 years! Recent data has increased confidence that inflation will continue to move towards the 2% target. The prime rate decreases to 6.95% across lenders.
– Statistics Canada: Economy expanded at smaller than expected rate of 1.7% in Q1, with sixth per-capita GDP decline in 7 Qs. Growth missed forecasts, coming in cooler than expectations of 2.2%, with GDP growth in Q4 revised downward from initial 1.0% to annualized rate of 0.1%.
– TransUnion report: Number of Canadians paying only the minimum monthly amount on their credit card rose eight basis points annually to 1.3% in Q1. Total consumer debt in Canada was $2.38T, compared with $2.32T in 2023, down only slightly from a record $2.4T in Q4.
– CMHC: Outstanding residential mortgage debt across the country ticked up by 3.4% annually in February, bringing its total to $2.16 trillion. This is the slowest annual growth in Canada for 23 years. Delinquency rates by historical standards remain low, at 0.17% in Q4 2023.
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.
