Weekly Digest ——— September 13th, 2023 Bank of Canada Rate Announcement The Bank of Canada hit the pause button last week. This was an anti-climactic reveal as the market had priced this in for over a month. Canadian GDP dipped in Quarter 2 by -0.2%. The forecast was for...
Weekly Digest ——— September 1st, 2023 Changes to HELOC’s in Canada Starting November 1st, 2023, any borrowers who have a Home Equity Line Product will be impacted by impending changes laid out by OSFI. Any global limit registered to 80% of the value of the home will gradually have...
Weekly Digest ——— August 23rd, 2023 Inflation Rebounds in July Inflation was projected to rebound thanks largely to base effects for comparisons. The inflation numbers ticked back up to 3.30% (above the 3.20% projection). Surging oil prices have not helped the BoC’s uphill climb to the 2% inflation target. As...
Weekly Digest ——— August 11th, 2023 Jobs Report July numbers are in: Employment shrunk by 6,400. The consensus however, was for a +20,000 reduction. Unemployment climbed to 5.50%. This is the highest in 18 months. Perhaps the most troubling stat is the construction industry lost 45,000 jobs. This further fuels the housing...
Weekly Digest ——— 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...
Weekly Digest ——— July 13th, 2023 The Final Hike? Canada’s overnight rate is now 5% with the prime rate at it’s highest level in 22 years. The Bank of Canada is predicting inflation will stick at around 3% for the next 12 months. There are no concrete predictions...
Weekly Digest ——— July 7th, 2023 BMO To Enter The Mortgage Broker Channel Starting January 1st, 2024, mortgage brokers will once again have access to Bank of Montreal. This now marks 3 of the big 5 banks to enter our space. 40% of all new mortgages are arranged through...
Weekly Digest ——— June 30th, 2023 Inflation Cools Inflation is down a full 1% month over month (now sitting at 3.40%). This is lowest inflation has been in 2 years. The 3-month core measure is also down to 3.60%. Over 60% of the slowdown can be attributed to stabilizing energy...
Weekly Digest ——— June 26th, 2023 What Happens Next? The chart below shows how much interest rate forecasts and projections have changed in the last 90 days. The “Time To First Cut” metric continues to get pushed back further into 2024. The blue/purple line shows March projections for rates The...
South of the Border The Federal reserve in the US took a break this week from hiking rates, but it has signalled for more hikes before the end of the calendar year. After 500 basis points of hikes, the Fed paused for the first time in...