Canadian mortgages are getting a lot more expensive as bond yields surge higher. The benchmark Government of Canada (GoC) bonds are climbing, influencing fixed-term mortgage costs. Canada hasn’t seen this kind of pressure on bond yields since the 90s, at the peak of the last tightening cycle. This cycle, however, is just getting started. Expect […]
Canadian real estate prices are approaching a mile-long stretch of hurdles. Easy credit conditions are being rapidly reversed, and then some, according to BMO Capital Markets. The bank warned clients of a laundry list of measures designed to cool the market, all hitting at once. They’ll have a limited impact compared to the big market […]
Canadian mortgage rates are set to go vertical as bond yields surge higher. BMO Capital Markets explained to clients that mortgage rates will rise “straight up.” As central banks increase the intensity for their fight against inflation, yields are rising. The result is soaring mortgage rates, expected to climb even faster in the coming months. […]
Canada’s central bank is forecast to increase their fight against inflation. BMO Capital Markets released its latest forecast showing more aggressive rate hikes. They now see the Bank of Canada (BoC) hiking at double the previous forecast for at least two meetings. The accelerated hikes are just a part of the central bank’s battle to […]
Canada’s excessive low rate policy has created a wave of speculative housing demand. That demand can end very quickly, as interest rates climb and real estate price growth slows. In a weekend note to clients, BMO explains it’s a less than ideal time to expect home prices to grow. Rising rates won’t have much of […]
Canadians expect to buy a lot of real estate over the next year, but not even close to last year’s volume. That’s one of the insights in this year’s RBC Home Ownership Poll released this week. Last year the poll showed a massive surge of buyers planning to enter the market, which proved true. This […]
Canadian real estate is increasingly flashing warnings after detaching from incomes. Sal Guatieri, a senior economist at BMO, found another one — home values as a percent of income. The indicator calculated by Statistics Canada (Stat Can) shows home prices climbing much faster than incomes. It almost looks like a plotting error, as homes continue […]
Canadian real estate prices might be soaring, but mortgage growth is hitting a wall. Bank of Canada (BoC) data shows mortgage credit hit a new record in January 2022. Annual growth is still close to the highest level since 2008, but several signs show we’re past the peak. With rising interest rates shrinking mortgage budgets, […]
Canadians aren’t keen on the prospects of buying a home, according to a mortgage industry report. Mortgage Pros Canada (MPC), a trade association representing mortgage brokers, released its Semi-Annual State of The Mortgage Market. One of the key data points is a consumer survey used to gauge the public’s sentiment on the market. They found […]
Canadian real estate prices are unique due to how expensive it has become, but not when it comes to recent price growth. BMO chief economist Douglas Porter explained, once again, monetary policy drove prices higher. Central banks adopted “hyper-stimulative” policies to drive excess demand to push prices higher. To illustrate this, he contrasts Canada with […]
