February 26th, 2026 Mortgage Industry Update
The Bank of Canada announced on January 28th that its overnight rate will remain at 2.25%. After a strong Q3, GDP growth in Q4 likely stalled. Economic growth is projected to be modest in near term. Expects inflation to stay close to 2% target over the projection period. The prime rate remains at 4.45%.
Additionally this week:
– CREA: The national average sale price in January was $652,941, down 2.6 per cent from a year earlier. The association has projected the national average home price to rise 2.8 per cent on an annual basis this year to $698,881.
– Statistics Canada: National trade deficit last year widened to $31.3 billion, marking the largest annual shortfall on record outside of the COVID-19 pandemic, as U.S. tariffs hammered key export sectors. Annual exports last year decreased by 0.2%. Exports to the US tumbled 5.8%.
– CREA: January home sales fell 5.8% month over month on a seasonally adjusted basis and 16.2% compared with a year earlier. New listings rose 7.3%, pulling the national sales‑to‑new‑listings ratio down to 45% from 51.3% in December. Months of inventory up to 4.9 now.
– Urbanation: Average price for a one-bedroom apartment in the city sat at $2,183 in January, which is a 7.2 per cent drop from last year at this time. Two-bedroom apartment prices have also fallen by 8.6 per cent, reaching a $2,801 rent average.
– Statistics Canada: 33% of households moved within the previous five years. Among those, roughly one in four, or 25.3 per cent, said their main motivation was to get a bigger or better-quality dwelling.
– Statistics Canada: Headline inflation rate slowed slightly to 2.3% last month, versus economist expectations for it to hold steady at 2.4%. The consumer price index was flat on a monthly basis.
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.
