March 25th, 2025 Mortgage Industry Update
The Bank of Canada announced on March 12th that its overnight rate will be cut from 2.75% to 3.00%! Marks the seventh consecutive rate cut from the bank. Heightened trade tensions will likely slow pace of economic activity and increase inflationary pressures in Canada. The prime rate decreases to 4.95%.
Additionally this week:
– National Bank: Mortgage payments as a percentage of income have fallen to their lowest level in nearly three years. However affordability remains constrained, as this percentage remains above 50% at the national level.
– Statistics Canada: Country’s population grew at an annual rate of 1.8% last year, a marked slowdown from 3.1% in 2023 and 2.5% in 2022. With 744,324 people added, population reached 41.5 million. Added new residents at the slowest pace in three years due to falling immigration.
– Statistics Canada: National headline inflation surged to 2.6% year-over-year in February, a sharp jump from January’s 1.9% and higher than economists had expected.
– CREA: Single-family home prices in Ontario have been stable since November of 2023. Single-family homes ranged within a fairly tight band between about $940,000 and $970,000 over that 16-month period, ending up roughly where they started.
– CREA: Home sales in February down 10.4% annually. Lowest level since November 2023 and largest monthly drop since May 2022. New listings fell 12.7% monthly. Total listings up 13.1% yearly. Average sale price of a home sold was $668,097, down 3.3% yearly.
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.
