July 23rd, 2025 Mortgage Industry Update
The Bank of Canada announced on June 4th that its overnight rate will hold at 2.75%. Marks second pause after 7 consecutive rate cuts. The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty and diminished prospects for economic growth. The prime rate remains 4.95%.
Additionally this week:
– For the second time this year CREA has downgraded its forecast for home sales in 2025. Now expects a total of 469,503 residential properties to be sold this year, a 3% decline from 2024. National average home price is forecast to fall 1.7% on an annual basis to $677,368 in 2025.
– CREA: Transactions increased by 2.8% last month compared with May. Sales gain followed a 3.5% increase in May. GTA led recovery, with transactions up cumulative 17.3% since April. National average sale price declined 1.3% yearly to $691,643. New supply declined by 2.9% monthly.
– Statistics Canada: National inflation rate ticked higher in June, rising to 1.9% and likely ending any lingering hopes of a Bank of Canada interest rate cut this month. CPI had risen from May’s figure of 1.7%, coming in slightly lower than analysts had expected but still jumping.
– MNP Consumer Debt Index survey reveals that 64% of respondents want interest rates to decrease. 36% of Canadians report feeling anxious or stressed about their finances, while 26% say they’re delaying major life decisions. 24% are constantly managing unexpected expenses.
– Rentals.ca: The average monthly asking rent for an apartment made a minor drop last month to $2,125. Was down 0.2% (-$4/month) from the month prior. Rents were 2.7% lower than last June, marking the 9th consecutive month that the year-over-year rate was negative.
– Statistics Canada: The economy added a net 83,100 jobs last month while the unemployment rate fell, sliding to 6.9% and defying expectations of a slight increase. The June increase marked the biggest jobs increase since the end of last year.
– Zoocasa Canada compared average home prices and corresponding mortgage payments across 22 major Canadian cities from 2015 to 2025. Found that average monthly payment increased by more than $1,000 in most major Canadian cities – and in some cases, they’ve nearly tripled.
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.
