Canadian businesses are optimistic about the future, but inflation and wage headwinds are brewing. The CFIB small business confidence survey showed improving confidence in March 2022. It also reveals their expectations of high inflation are rising further. Despite higher inflation, businesses have lower expectations for future wages, a toxic combination. Canadian Small Business Confidence Gets […]
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. […]
Canadian real estate prices have increased at such a rapid pace, incomes aren’t even close. US Federal Reserve calculations show home prices in Canada have increased multiples of the rate of income growth as of Q3 2021. Most people have some idea how strange this situation is, but we need to zoom out to appreciate […]
Canada’s central bank is getting serious about controlling high inflation… that they had said was out of their control. The Bank of Canada (BoC) spent the past year claiming high inflation is due to external factors. A day after we explained to Parliament’s finance committee how monetary tools were used to create inflation, the BoC […]
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 […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Prices Better Dwelling’s Opening Statement Before Canadian Parliament’s Standing Committee On Finance The Canadian Parliament’s finance committee invited us to participate in their inflation investigation. We’re not snitches usually, but we took them up on the opportunity to explain the role of […]
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 […]
Opening Statement by Stephen Punwasi Better Dwelling Appearance before the House of Commons Standing Committee on Finance March 24, 2022 Good afternoon Committee, and thank you for the invite. My name’s Stephen Punwasi, and I’m the chief data analyst at Better Dwelling, Canada’s largest independent housing news source. Some of you might be familiar with […]
