February 25th, 2025 Mortgage Industry Update
The Bank of Canada announced on January 29th that its overnight rate to 3.00% from 3.25%! Marks the sixth consecutive rate cut from the bank. The economy is expected to strengthen gradually and inflation to stay close to target moving forward. The prime rate decreases to 5.20%.
Additionally this week:
– Royal LePage survey: 57% expect an increase in their monthly mortgage payment when they renew mortgage on their primary residence. 22% expect a significant rise. A quarter believe their payment will remain within $100 of their current payment, and 15% think it will decrease.
– TD Bank survey: Generation Z is least likely to discuss their experiences with financial fraud at home, despite being the most targeted age group. In total, 29% admit they avoid talking about fraud incidents at home. This figure was significantly higher among Gen Z, with 51%.
– CREA: January new listings surged by 11% monthly. Home sales dropped 3.3% monthly to 26,650 (but up 2.9% yearly). 136,000 properties listed for sale at the end of month, up 12.7% yearly. National average home price reached $670,064, up 1.1% yearly.
– Statistics Canada: The Toronto CMA unemployed population reached a whopping 357k people in January. It was a big jump, helping to push the unemployment rate to 8.7%, much higher than the national average of 6.2%.
– Statistics Canada: National inflation rate increased in January, jumping to 1.9% despite the national GST holiday. Energy prices were the main factor behind that spike, rising 5.3% yearly with the cost of gasoline increasing by 8.6%. Shelter costs were up 4.5%.
– Statistics Canada: National building permit activity ended 2024 on a high note, with the total value of permits reaching their highest level since 2017. Building permits in December surged 11% from the previous month to a seasonally adjusted $13.15 billion.
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.
