Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Prices Grew Over 25x Faster Than U.S. Prices Since 2005 Poor policy choices have led to a comically large gap between Canadian and US home prices. Canadian home prices generally move in line with US home prices, but […]
Bank of Canada Sees Real Estate Softening “Gradually”
Canada’s central bank didn’t devote a whole section for real estate to their latest monthly report like they usually do. However, the Bank of Canada (BoC) did provide a lot of insights in the January Monetary Policy Report. The central bank believes “elevated” housing activity was the result of a shift in buying behavior, as […]
Bank of Canada’s Mortgage Buying Is A Quarter The Size of New Mortgage Credit
Canada’s central bank is using billions to flood the mortgage market with cheap money. It hasn’t been very effective, considering the scale of the purchase. Bank of Canada (BoC) data shows a big mortgage bond buying spree since the beginning of the pandemic. The dollar value of the bond buying was known, but we’re only […]
Bank of Canada Pumping Billions Into Mortgage Liquidity To Prop Up Real Estate
Canada’s central bank is desperately trying to prop up real estate markets with liquidity. Bank of Canada (BoC) has been injecting billions into Canada Mortgage Bonds (CMBs). The central bank began purchasing a few million worth of bonds during last year’s real estate slow down. As the pandemic hit, the BoC began buying hundreds of […]
Canadian Interest Rates Are Falling, But Fear Is Driving Mortgage Rates Higher
Are falling interest rates going to push Canadian real estate prices even higher? That’s not exactly what’s happening right now. The Bank of Canada (BoC) has been rapidly lowering the overnight target for interest rates in response to COVID-19 economic slowdowns. Concerns about this overheating the market are starting to bubble up (no pun intended). […]
Canadian Mortgage Growth Picks Up, But Is Still The Slowest In Over 20 Years
Canadians are taking out mortgage debt, but at an unusually slow pace these days. Bank of Canada (BoC) data shows outstanding mortgage credit reached a new high in July. Mortgage growth is improving compared to previous months. However, this past July was still the slowest rate of growth for the month in over two decades. […]
Canadian Banks Are Trying To Stimulate Borrowing By Dropping Rates, Down 23 BPS
Canadians swimming in debt can rejoice – they’re getting the benefits of a cut without the rate cut. Bank of Canada (BoC) numbers show the effective household borrowing rate dropped to a multi-month low the week of June 14. The typical household is still paying more than last year, but rates are down 23 bps […]
Bank of Canada Staff Warn Home Equity May Be Concealing Financial Distress
Canadian real estate owners may be hiding financial vulnerability using complex debt products. Bank of Canada (BoC) staff published a new analytical note examining new home equity data. The new data gives more insights into home equity borrowing, and how the debt is drawn. Out are traditional HELOCs, held separately from the mortgage. In are […]
Canada’s Money Supply Growth Is Pointing To A Slower Economy
Canadian households are up to their neck in debt, and it’s showing in the country’s money supply. Bank of Canada (BoC) numbers show the M1+, a measure of the country’s “cash,” is seeing growth slow in February. All signs point to this number heading even lower, and taking economic growth with it as well. What’s […]
Canadian Household Credit Growth Barely Moves, Annual Growth Falls To 1983 Levels
Fresh off an epic credit binge, households in Canada are starting to shy away from more debt. Bank of Canada (BOC) numbers show household debt levels barely moved in February. Not only did debt barely move from the month before, but the annual pace of growth fell to levels not seen since 1983. Canadian Households […]