July 30th, 2026 Mortgage Industry Update
The Bank of Canada announced on July 15th that its overnight rate will remain at 2.25%. The economy is showing signs of improvement. Growth is picking up and inflation is projected to ease gradually. There are still important risks and uncertainties related to the war and US trade policy. The prime rate remains 4.45%.
Additionally this week:
– Yardi: National vacancy rate dropped 40 bps to 4.7% in Q2 2026, ending nine consecutive quarters of increases. Vacancies remain 60 bps above the 4.1% rate recorded a year earlier. Average national in-place rent rose just $6 to $1,774, smallest quarterly gain since 2021.
– Statistics Canada: Household credit climbed 0.5% (+$16.9 B) to $3.27 T in May, growing at its fastest pace in well over a year. Up 4.4% (+$138.7 B) from last year. Canadians owed $2.4 T in mortgage debt, rising 0.5% (+$11.9 B) in May, up 4.3% (+$100.9 B) from last year.
– CMHC now projects 457,200 home sales nationally this year, down from 470,314 transactions recorded in 2025, with the average selling price falling to $675,200 from last year’s $679,543. As recently as February, the agency had projected both figures to rise.
– BILD: Total new home sales across GTA reached 1,175 in June. Roughly double last June’s record low, but still 52% below 10-year average of 2,456 units. 273 condo unit sales – remains 85% below 10-year average. Benchmark price for new condos in the GTA held at $1,038,604.
– Urbanation: New condo sales in GTHA rose 52% yearly to 702 units in Q2, the first annual gain since Q3-2023. Sales still 86% below 10-year average for Q2 periods. Asking prices for completed, unsold condos slipped 2% annually to average of $1,186 per square foot.
– Statistics Canada: National annual inflation rate retreated to 2.8% in June 2026, pulling back from a 29-month high of 3.2% in May. Was lower than the 2.9% rate expected in a Bloomberg survey of economists. Was driven almost entirely by a 10.2% monthly drop in gasoline prices.
– CREA: Home sales edged up 0.5% on seasonally adjusted monthly basis in June 2026. Extended national market’s recovery to three consecutive months of gains and lifting activity roughly 7% above where it stood in March. National average home price reached $696,078, up 0.5% yearly.
– CREA expecting total of 463k residential sales throughout this year, representing 1.4% decline from 2025. Marks reversal from April forecast of 1% gain, which was downgrade from January’s prediction of 5.1% growth. National average home price forecast to rise 1.1% to $686,710.
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.
