Time for your weekly cheat on this week’s top stories. Canadian Real Estate Global Stagflation Reminiscent Of The 1970s Is Forming, And It’s Bad News: National Bank National bank of Canada’s chief economist warned of a new risk — stagflation. This is a period of high inflation and low economic growth, and the first signs […]
Canada’s largest bank observed the fastest deterioration of home prices in decades. RBC economists crunched the numbers on housing affordability for Q2 2021. The bank found the share of income needed to carry ownership costs on the purchase of a home has surged. Even with negative mortgage rates (or because of?), affordably made the biggest […]
Canadians were given a boost to affordability when rates were cut at the start of the pandemic. The Bank of Canada‘s housing affordability index fell to the most affordable level in over a decade. By cutting interest costs, households can finance debt more cheaply, improving affordability. It also happens to increase demand though, pushing home […]
Canadian real estate is in for a short-term boost, but market factors are likely to cool demand. BMO‘s Robert Kavcic’s latest research note covered Toronto real estate’s September boom. The bank’s senior economist sees a short-term boost to demand, as conditions tighten. This should be tempered by a rising rate environment in the not-so-distant future. […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian GDP Slips Lower As The Real Estate Boom Turns Into A Drag Canadian real GDP contracted in the most recent data, partially due to a housing drag. Real GDP dropped 0.1% in July, following a 0.6% increase in June. The […]
Global bond yields are rising and it’s going to push the cost of financing a mortgage a lot higher. The Government of Canada (GoC) 5-year bond yields pushed higher again yesterday. Earlier this week, we mentioned lenders are considering reversing recent mortgage rate cuts. Now we have our first to actually execute — TD. More […]
Canadians are once again comfortable spending their recent home equity windfall. The balance of home equity line of credit (HELOC) debt reached a new record high in July. Growth has recovered from last year’s low, and is now at the highest level since before the pandemic. Canadians Owe Over $267 Billion In Debt Secured By […]
Canadian bond yields are on the rise, and a big bank has forecast it will take mortgages along for the ride as well. The latest research note from BMO focuses on climbing longer term bond yields. The bank sees this as just the beginning, and sees modest growth for the next two years. They also […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada Re-Elected The Same Leadership, But Real Estate Will Be Very Different Canada re-elected the same leadership, but with a very different housing strategy. They promised demand inducement schemes, supply subsidies, and improvements in trade transparency. The demand measures are likely […]
Canada’s largest banks cut mortgage rates last week, and now they might need to reverse the cuts. Half of Canada’s “Big Six” banks cut the interest rate on their 5-year fixed rate mortgages at the end of last week. It might have seemed like a no-brainer back then, but a week is forever ago in […]
