Canadian real estate markets have been warming up with dreams of cheaper mortgages. Despite the Bank of Canada (BoC) making no changes yesterday, they may have changed expectations. In a note to investors, BMO explained the central bank’s messaging demonstrates cuts are a long way off, potentially backstopping progress made on fixed rates. The bank […]
Canada’s central bank held rates as widely expected, but still surprised. Bank of Canada (BoC) announced they’ll continue to hold the overnight rate at 5.0%, along with continued quantitative tightening (QT). It was believed the central bank would be hawkish, hoping to avoid a repeat of last year that sent inflation (and rates) even higher. […]
Canada’s economy isn’t just slowing down, it’s already in recession. That’s the take from prominent macro research firm Oxford Economics, whose latest research brief sees a hard landing coming. In the unlikely event a soft landing occurs, they see higher inflation and even higher interest rates. Canada Is Already In Recession, Hard Landing Expected The […]
Canada’s largest bank sees no rate cuts next week, but it will still be an eventful week. RBC agrees with the consensus—they see the Bank of Canada (BoC) holding rates at the January announcement. They’ll be watching closely though, expecting the central bank to push back against any hints of rate cuts. Stronger-than-expected inflation data […]
Canadian real estate buyers have been motivated by falling mortgage rates, but that may change soon. Government of Canada (GoC) 5-year bond yields have been climbing sharply. The yield, which helps determine the cost of 5-year fixed rate mortgages, had been falling over the past few months, delivering relief to buyers. Over the course of […]
Canadian headline inflation is heading in the wrong direction. The Statistics Canada (Stat Can) Consumer Price Index (CPI) shows annual growth at 3.4% in December, up 3.4 points compared to a month before. The rate is higher than anticipated, but attributed to the base effect of a few components. At least one prominent economist believes […]
Cheaper financing and talk of the end of rate hikes improved markets across the country. Canadian Real Estate Association (CREA) data shows rising home sales in December. Diving into the data revealed a much more mixed picture though, with perceived improvements masking further erosion from last year. The conditions have economists at BMO warning investors […]
Global real estate prices are falling, especially in more advanced economies. Bank of International Settlements (BIS) data shows real home price growth was negative for most markets in Q2 2023. The same advanced economies that saw the largest growth post rate cuts, are now leading the way lower. They also appear to be struggling with […]
Exuberant Canadians are hooked on real estate, and consequently are following the central bank unusually close. A new report from BMO shows households have shifted price growth expectations with Bank of Canada (BoC) announcements. As the rate tightening cycle comes to an end, the bank sees the potential for the next round of central bank […]
Canadians are starting to feel the consequences of their debt addiction. MNP, Canada’s largest insolvency consultancy, released the results of its regular consumer debt survey. They found most consumers are struggling to repay their loans, and regret borrowing as much as they did. However, it’s not clear they could have prevented the borrowing if they […]
