July 16th, 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:
– Canadian homeownership has become slightly more affordable in the first quarter of 2024, according to a report by RBC. The costs for an average home across all housing types fell to 60.9% of median household income, down from 63.8% in Q4 2023.
– Canada’s economy trimmed 1,400 jobs in June, the second time in four months the labour market has contracted. The unemployment rate also jumped month over month by 0.2%, bringing it to 6.4% – higher than median estimates indicated by a Bloomberg poll of economists.
– TRREB: Average selling price in GTA was down 1.6% yearly in June to $1,162,167. Home sales in June declined 16.4%. New listings were up 12%. Condos showing 28% decrease in sales, townhouses down 14%, semi-detached down 11.4%, and detached homes down 10.6%.
– Angus Reid Institute: 28% of Canadians were considering a move out of their home province due to concerns about the cost of housing. In Ontario, the number jumps to 39%, the highest of any province.
– Desjardins: Canadian households recently accumulated a world class amount of debt. In fact, households borrowed so much that they’re now the third most indebted across the world.
– According to a recent Royal LePage survey conducted by Hill & Knowlton, 27 per cent of renters in Canada have set their sights on buying a property within the next two years, with this figure rising to 40 per cent among those aged 18 to 34.
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.
