July 7th, 2020 Mortgage Industry Update
The Bank of Canada announced on June 3rd that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The possibility of further rate reductions remains unclear at this time as the economy deals with the COVID-19 pandemic.
Additionally this week:
– Government support measures and payment deferrals from creditors are keeping Canadian consumers afloat, resulting in the biggest year-over-year decline in insolvencies dating back to 1988. Filings down 51% to 6,111 in May, that’s also the lowest total volume since 2000.
– Guelph, Ontario, has been named the best place to buy real estate in Canada by MoneySense magazine. The southwestern Ontario city has topped MoneySense’s Where to Buy Top 35 ranking after coming in second place last year.
– Conference Board of Canada: Consumer confidence has rebounded to approximately two-thirds of its pre-pandemic level (up 25% from May 1 to June 1). Currently sitting at 80 (baseline is 100), the Index is a far cry from where it stood in February, when it reached 121.
– More than 80 per cent of Canadians aged 25 to 64 are prepared for retirement and the vast majority have a high probability of being prepared, according to a new report by business school HEC Montréal’s Retirement and Savings Institute with funding from the Global Risk Institute.
– Statistics Canada: GDP fell 11.6% in April with non-essential businesses shut for the full month following a 7.5% decline in March. Largest monthly drop on record in April. However still beat expectations as economists on average expected a drop of 13 per cent for April.
– The June rent report from TorontoRentals(.)ca and Bullpen Research & Consulting recorded a 0.3 per cent month-over-month decline in the average rate for all property types in Toronto, from $2,387 on average in April to $2,380 in May.
Stay tuned for the next update!
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