Weekly Digest

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July 24th, 2023

Canadian CPI Cools

Canada’s CPI received a welcome drop into the “2% range”, coming in at 2.80%. Inflation comparable data sets will get tougher moving forward causing inflation to remain sticky for the calendar year. If you take mortgage interest cost’s out of the inflation data, the headline CPI is 2.0% (on target).

Energy prices are continuing to rise and grocery prices remain elevated. Desjardin Economics put together a great chart on the different benchmarks for inflation. This is pictured below. As you can see, core service inflation remains elevated which is why prices for everyday items still feel (and are) expensive.

House Starts vs Immigration

Housing starts came in at 281,000 in June (above target). In the first half of this year, starts averaged just 235,000. This is down almost 30,000 unit from 2022 and almost 40,000 in 2021. The government has promised to double construction, but it is working in reverse.

Current Interest Rates

CONVENTIONAL

• 5 year fixed, 30 yr amortization – 5.94%

• 3 year fixed, 30 yr amortization – 6.16%

• 5 year variable, 30 yr amortization – Prime – 0.60% = 6.35%

• 5 year fixed, 25 yr amortization – 5.84%

• 3 year fixed, 25 yr amortization – 6.06%

• 5 year variable, 25 yr amortization – Prime – 0.70% = 6.25%

INSURED

• 5 year fixed, 25 yr amortization – 5.34%

• 4 year fixed, 25 yr amortization – 5.39%

• 3 year fixed, 25 yr amortization – 5.84%

• 5 year variable, 25 yr amortization – Prime – .90% = 6.05%

Fast Facts

• 75,784 – That’s the new record set for attendees at a women’s football game in Australia, as the host took on the Republic of Ireland to kick-off the FIFA Women’s World Cup 2023 in Sydney on Thursday.

• 12 – That’s how many #1 albums Taylor Swift now has – the most held by a woman in history.

• 19 feet – That’s the length of the Burmese python caught by hunters in Florida’s Big Cypress National Preserve last week – the longest on record.