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November 17th, 2020 Mortgage Industry Update

The Bank of Canada announced on October 28th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic. 

Additionally this week:
– CIBC report: Number of Canadians counted as long-term unemployed went up by approximately 151,000 in October and 79,000 in September. Total of almost 450,000 long-term unemployed Canadians (out of work for more than 27 weeks) has now surpassed the peak of the 2008-09 recession.

– Bloomberg survey: With a steady decline from the peak of 13.7% in May, the national jobless rate has gradually declined monthly to end up at 9% in September and 8.9% in October. Approximately 83,600 jobs were added to the national workforce last month.

– Latest Bloomberg-Nanos poll: 45% of Canadians are confident of an increase in the value of homes in their neighbourhoods over the next half-year. Nanos Research said that this late-October figure represented a new peak since mid-March.

– TRREB: Average selling price for all homes across GTA climbed to $968,318 in October, up 13.7% from 2019, marking fifth consecutive month of record-breaking prices. Total sales up 25.1% to 10,563. Detached home sales up 33.9% to 5,263, prices up 15% to $1.205 million.

– Nanos Research Group survey: 45% of respondents believe the value of real estate in their neighbourhood will increase over the next six months, the highest reading since mid-March. At the same time, only 13% believe values will decrease, the smallest reading over the same period.

– A recent survey sponsored by Credit Canada using a representative sample of 1,500 Canadians revealed that, while 24% Canadians have used income supports (such as CERB) and 9% have used payment deferrals, 39% have no idea what they’ll do when the support runs out.

 
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.