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 […]

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 […]

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 […]

Despite some minor improvements, housing affordability in Canada remains a critical issue. RBC’s aggregate housing affordability measure dipped slightly, falling by 0.3% to 59.5%. This means that it still takes a significant portion of the average household income to cover the costs of home ownership. In particular, affordability deteriorated in Vancouver and Toronto, where it […]

  Bond Yields Surge, Predicted Impact on Mortgage Rates Bond yields, including the Government of Canada 5-year bond, have risen significantly, leading to an anticipated 20 basis point increase in mortgage rates. Ron Butler of Butler Mortgage expressed concern over these developments, expecting rates to rise further. Two-year fixed rates are now around 7%, and […]

In Canada, rising delinquencies in both mortgage and non-mortgage debt during the second quarter indicate the strain of high-interest rates on borrowers. Delinquencies for non-mortgage debt increased by 26.3%, with notable jumps in missed payments across various types of loans. Auto loans and home equity lines of credit (HELOCs) are nearly back to pre-pandemic levels, […]

While year-over-year core inflation has now stopped rising. Headline inflation has fallen from a peak of 8.1% to 6.9% The Bank of Canada has indicated its future rate decisions will be driven by economic data, but that it is “still prepared to be forceful” should the need arise. Deputy Governor Sharon Kozicki made the comment […]

With some variable rates higher than fixed rates, people are leaning towards fixed as their preferred rate. Now that the spread between fixed and variable rates has largely evaporated, a majority of borrowers are once again opting for fixed-rate mortgages. As of August, 44.2% of new mortgage borrowers chose a variable rate, down from a […]