September 3rd, 2024 Mortgage Industry Update
The Bank of Canada announced on July 24th that its overnight lending rate will be cut to 4.50% from 4.75%! Marks the second back to back rate cut! Recent data has increased confidence that inflation will continue to move towards the 2% target. The prime rate decreases to 6.70% across lenders.
Additionally this week:
– Equifax: 1/17 Canadians aged 26-35 missed a credit payment in Q2, compared with 1/23 overall. Rate was at 1.99% in the second quarter of 2024. Up 21.6% from year earlier. Consumer debt levels rose to $2.5 trillion, up 4.2% since the second quarter of 2023.
– Data from Colliers International Group Inc. showed that distressed commercial property sales in Canada reached $803 million in the first half of 2023, more than double the amount from the same period last year.
– CREA: New listings hit 83,607 homes in July, up 12.7% from last year. The annual growth rate was more than double the 4.8% increase in sales over the same period. Toronto reported 16,296 new listings in July, an increase of 18.8% from last year.
– Royal LePage: 84% of Canadian adults in Generation Z and younger millennials—aged 18 to 38—consider homeownership a good investment. Among those who do not currently own a home, 74% see it as a priority and a significant milestone they’re working towards.
– Ontario government has announced changes to planning guidelines, with new guidance aimed at making it easier for towns and cities to hit housing targets they currently can’t reach. Changes would reduce the policy’s previous version by 30,000 words and 100 pages.
– Houseful survey: 78% of single or unmarried first-time homebuyers under 30 reported that they are focusing on saving for a home. This contrasts with 70% of those over the age of 30 who prioritize the same goal.
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.
