BoC interest rate cut likely on its way

Robb NelsonMortgage Talk Canada

While it didn’t happen this week, the likelihood that the Bank of Canada slashes interest rates is growing, according to observers. “If we were only looking at domestic factors, we might think that the Bank would soon start to consider further rate hikes,” said Stephen Brown, an economist with Capital Economics. “Economic growth is on track to outperform the Bank’s … Read More

Economists share interest rate predictions

Robb NelsonMortgage Talk Canada

by Neil Sharma While there’s near consensus among economists that the Bank of Canada will hold the interest rate at 1.75% on Wednesday, quite a few of them also believe a rate cut is just around the corner. “If we were only looking at domestic factors, we might think that the Bank would soon start to consider further rate hikes,” said … Read More

Only 7% of Vancouver families can afford homeownership

Robb NelsonMortgage Talk Canada

by Neil Sharma With the mortgage stress test, only one in 13 Vancouver families can afford to buy a home. “Only one in eight families earns the income necessary to manage ownership costs in the Vancouver area, and one in five families in the Toronto area and Victoria. And this isn’t taking into account the mortgage stress test,” said RBC’s report … Read More

National market benefiting from lower borrowing costs, more jobs

Robb NelsonMortgage Talk Canada

by Ephraim Vecina Lower borrowing costs and a growing labour force are stoking the national housing market, with Canadian home prices going up for the first time in nine months, according to Teranet data. The latest edition of the Teranet-National Bank Composite House Price Index noted that prices went up by 0.5% on a month-over-month basis in May. Increases were observed in nine out … Read More

Canadian home sales returned to historical average last month

Robb NelsonMortgage Talk Canada

by Steve Randall There was a further increase in home sales nationwide in May, finally returning sales to 10-year average levels for the month. The Canadian Real Estate Association reported a 1.9% month-over-month increase while actual seasonal activity gained 6.7% year-over-year; the largest annual gain in three years. Sales only increased in half of local markets in May but were … Read More