Canada was no exception to the retreat of global bond yields after the US banking crisis hit last week. The Government of Canada (GoC) 5-Year Bond yield plunged at one of the fastest rates in a generation. It wasn’t alone, with most yields falling—potentially signaling lower borrower costs. That is, if the panic-driven drop sticks […]
Canada’s central bank didn’t break its pause, but signaled it will still drive borrowing costs higher. This morning, the Bank of Canada (BoC) announced the overnight rate will hold at 4.5%, surprising few. They did just announce a pause at the last meeting, so reversing course was unlikely. However, that doesn’t mean borrowing costs won’t […]
Canada’s largest bank believes the end of the real estate correction is within sight. That was the message in RBC’s latest housing brief, though that doesn’t mean price declines are over. The bank believes home prices are halfway to the bottom, and doesn’t anticipate a bounce until next year. However, they expect the market to […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Debt Is Chugging Along, Despite The Slowdown Canadian mortgage debt continues to grow, rising 7.1% ($137.8 billion) over the past year to hit a total of $2.08 trillion in December. Growth is slower from the peak, but still elevated from […]
Canada’s addiction to mortgage debt is strong, despite the housing slowdown. Statistics Canada (Stat Can) data shows the balance of outstanding mortgage credit hit a new record in December 2022. Mortgage credit growth has slowed to the lowest level in years, but remains unusually elevated compared to pre-2020. That remains a concern with a balance […]
Canada’s economy is just too darn strong, and it’s become a thorn in the central bank’s paw. That was the takeaway from Bank of Canada (BoC) Governor Tiff Macklem’s speech to the Standing Committee on Finance to discuss inflation this morning. Inflation is easing but remains more than three times its target. If meaningful progress […]
Canada’s central bank’s latest research paper has mortgage brokers in its crosshairs. The Bank of Canada (BoC) just released a staff paper on mortgage intermediaries (brokers). In the working paper titled the Role of Intermediaries in Selection Markets: Evidence From Mortgage Lending, they compare broker-client outcomes to branch borrowers. The researchers found that broker-clients are […]
Canada’s economy is weak and interest rates will be falling soon to help out investments. That was the takeaway from the new Bank of Canada (BoC) Market Participant Survey (MPS). The survey asked representatives from banks, dealers, pensions, insurers, asset management, and research firms about their expectations for the economy in the near-term. The results […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate What Canadian Real Estate Correction? Detached Market Surges Up To $52k Higher Canadian real estate is showing signs of a firming market. The price of a typical single-family home across Canada fell 1.2% to $748,800 in December. Five markets bucked the trend, […]
Canadians are bracing themselves for the impact of higher interest rates. This morning, the Bank of Canada (BoC) announced another hike to the overnight rate. The central bank justified the move by citing a strong economy and excess demand. Even with the strength, they plan to hit pause “conditionally” on any higher moves to assess […]
