Weekly Digest

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September 6th, 2024

Partner Trip for 2025

April (Spring) 2025, our annual realtor trip will be held in Nashville, Tennessee.

Qualifying is easy. Send $1,500,000 in total closed mortgage business to automatically qualify.

To date, we have 4 realtors who have already qualified.

B.O.C Delivers Another Rate Cut 

The Bank of Canada lowered its overnight rate to 4.25% on Wednesday. Prime is now 6.45%. The Bank’s decision to cut by another 0.25% was expected by all 28 economists polled by Reuters. 

In the opening statement from Wednesday’s meeting, the Bank is signalling more rate drops. “If inflation continues to ease broadly in line with our July forecast, it is reasonable to expect further cuts in our policy rate”. 

Our eyes are now on the FED meeting in the US (September 18th). Traders worry that a 0.25% cut is not enough, and many are projecting a 0.50% drop to the policy rates.

Canada’s Job Report 

Canada’s unemployment rate rose more than expected to 6.6%.  Market consensus was 6.5% and the previous reading was 6.4%. 

Full time jobs dropped by 43,600 and were replaced by part time jobs of 65,700. 

Despite the rise in employment, continued strong population growth and a small rebound in the participation rate caused the unemployment rate to rise by 0.2%-points to 6.6%. With little sign yet that immigration is slowing, there is a growing chance that the unemployment rate will surpass 7% before peaking. 

Recession Indicators 

“45% of the recession indicators we tracked have been triggered,” says Rosenberg. “Going back to 1999, that’s never happened without a recession occurring.” 

The more joblessness we get: 

• the more likely the Bank of Canada may need to drop its key interest rate in half

• the more that bond yields will price in that possibility (drop). 

Current Interest Rates

CONVENTIONAL

• 5 year fixed, 30 yr amortization – 4.79%

• 3 year fixed, 30 yr amortization – 5.04%

• 2 year fixed, 30 yr amortization – 6.00%

• 5 year variable, 30 yr amortization – Prime – 0.70% = 5.75%

• 5 year fixed, 25 yr amortization – 4.74%

• 3 year fixed, 25 yr amortization – 4.94%

• 2 year fixed, 25 yr amortization – 5.95%

• 5 year variable, 25 yr amortization – Prime – 0.80% = 5.65%

INSURED

• 5 year fixed, 25 yr amortization – 4.49%

• 4 year fixed, 25 yr amortization – 4.54%

• 3 year fixed, 25 yr amortization – 4.64%

• 5 year variable, 25 yr amortization – Prime – .95% = 5.50%

Fast Facts

• 654 – The number of new home sales in the GTA in July — an “all time low,” says BILD. 

• 45% – The share of Canadian post-secondary students that are currently unable to adequately cover essential expenses, such as housing and food. 

• $226.9M – The price Mississauga-based Chartwell Retirement Residences is paying for three seniors housing properties on Vancouver Island. 

• US$62.3 million – Total prize money won by pro golfer Scottie Scheffler at tournaments this year. The record-breaking season equates to $819,000 per round of golf.