21 Feb

Analyzing the Impact of Unexpected Inflation Drop on Bank of Canada’s Rate Cut Plans

General

Posted by: James L James

Despite January’s unexpected drop in inflation, economists believe the Bank of Canada will likely delay its first rate cut until mid-year. Headline inflation in January came in at 2.9%, below expectations of 3.3%, attributed to lower energy and grocery prices. The Bank’s preferred core inflation measures also trended downward, with CPI-median easing to 3.3% and […]

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20 Feb

Canadian Housing Market Sees Continued Growth in January Despite Slight Price Decrease

General

Posted by: James L James

In the latest update from the Canadian Real Estate Association, the housing market continues its path to recovery, with a notable surge in home sales between December 2023 and January 2024. This upward trend, amounting to a 3.7% increase nationwide, reflects a growing confidence among buyers despite lingering uncertainties. However, it’s important to note that […]

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2 Jan

2024 Canadian Housing Outlook: Resilience, Renewals, and Rate Relief

General

Posted by: James L James

In 2023, Canadian mortgage holders faced challenges with a series of interest rate hikes by the Bank of Canada, impacting variable-rate borrowers and those renewing mortgages. While mortgage delinquency rates increased slightly, borrowers remained resilient. Looking ahead to 2024, about $251 billion in mortgages are set to renew, with an additional $352 billion in 2025. […]

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12 Dec

Exciting News for Mortgage Shoppers: Fixed Rates Drop Below 5%

General

Posted by: James L James

Mortgage rates in Canada are experiencing a notable drop, with fixed rates below 5% for the first time since spring. The decline follows a substantial drop in bond yields, prompting mortgage providers to cut rates by 20-30 basis points. For instance, Butler Mortgage now offers a market-leading insured 5-year fixed rate at 4.99%, specifically for […]

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5 Dec

Encouraging News on Canadian Inflation Front: Signs Point to Policy Rates Peaking, Paving the Way for Positive Economic Outlook

General

Posted by: James L James

The latest inflation report reveals positive developments, with the October Consumer Price Index (CPI) showing a decrease in year-over-year inflation to 3.1%, attributed to a decline in gasoline prices. Notably, rent prices accelerated, particularly in Nova Scotia, Alberta, British Columbia, and Quebec. Property taxes also rose, marking the highest national increase since October 1992. Despite […]

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14 Nov

Bank of Canada Signals Extended Duration of Higher Interest Rates

General

Posted by: James L James

Senior Deputy Governor Carolyn Rogers of the Bank of Canada has advised Canadians to brace for the likelihood of prolonged higher interest rates, attributing the shift to global adjustments and the diminishing factors that kept rates low during the pandemic. Rogers stressed the importance of proactive adjustments to safeguard the financial system’s resilience, noting a […]

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7 Nov

Canada’s Labor Market Stumbles: Implications for Interest Rates and Economy

General

Posted by: James L James

The recent Canadian jobs report for October signals a weakened labor market, diminishing the likelihood of further interest rate hikes by the Bank of Canada. The report reveals minimal job gains, a decline in full-time employment, stagnant working hours, and a slight easing in wage inflation. Most notably, the unemployment rate increased to 5.7%, the […]

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24 Oct

Encouraging Inflation Outlook Suggests Policy Rates Have Hit Their Peak

General

Posted by: James L James

Canadian Inflation Falls to 3.8%, Holding BOC’s Interest Rate Decisions Steady In September, the inflation report brought positive news as it surpassed expectations, indicating the end of a three-month upward trend in inflation. Both headline and core inflation rates on a year-over-year and three-month moving average basis decreased, suggesting that the 5% overnight policy rate […]

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17 Oct

CMHC Reports a 25% Decrease in Single-Detached Housing Construction Compared to the Previous Year

General

Posted by: James L James

Canadian single-detached housing construction in the first half of 2023 dropped by 25% compared to the previous year, resulting in 9,523 fewer units under construction in major metropolitan areas, according to the Canada Mortgage and Housing Corporation (CMHC). This decline is attributed to factors like high-interest rates, limited credit access, and elevated construction and labor […]

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