Tag Archive: economic news


Rates to Stay Low as Jobs Won’t Recover for a Decade: CBO

—The Mortgage Report: July 3— Long Road Back for Jobs: Avid rate watchers all want to know the same thing: how long will unemployment stay elevated? The answer to that is essential to knowing how long rates could remain in a trough. On Thursday, we got a sobering projection from a reputable source. The non-partisan Congressional Budget Office (CBO) says...

Fed “not even thinking about” rate hikes

The Mortgage Report – June 10 Dot Dot Dot Plot: The U.S. Federal Reserve, which sways Canadian rates more than many realize, was more pessimistic than expected in its rate announcement today. It’s “Dot Plot” (the Fed’s official rate forecast) now projects no rate hikes for 2020, 2021 and likely 2022. It’s unlikely Canada deviates much from the Fed’s path...

HSBC’s Record-Low 1.99% 5-year Fixed

The Mortgage Report – June 5 Big Drops from HSBC: The online mortgage juggernaut keeps shaking competitors’ trees. This time with Canada’s lowest bank-advertised 5-year fixed rate ever, according to our records. It’s also the first bank to crack the 2% barrier on a 5-fixed, albeit it’s for default-insured mortgages only. HSBC’s move not only reflects historically low funding costs,...

One of Three Things Must Occur for Record Low Mortgage Rates

The Mortgage Report – May 31 And One of Them’s Bad: If you’re rooting for lower mortgage rates, one of the following must happen: Bond yields must drop to record lows Bond yields steer fixed mortgage rates and are largely a reflection of Canada’s economic (inflation) outlook Rooting for economic pain—so mortgage rates fall—isn’t exactly a patriotic sentiment, so we’d...

Reverse Mortgage Rates Break Record

The Mortgage Report – May 28 Now in the 3s: For the first time ever, a Canadian reverse mortgage provider has a 5-year fixed term under 4%. Equitable Bank announced the offer Thursday, which applies to its 5-year “Lump-sum” reverse mortgage. Equitable trimmed all of its other reverse mortgage rates by 15 bps as well. That’s a big win for...

10-Year Fixed Mortgage Rates Fall to Record Low

The Mortgage Report – May 25 Decade Discounts: With rates near perma-lows, according to some, people aren’t exactly lining up to lock in for 10 years. That’s especially true with penalties being so large on 10-year fixed terms, that is, until a mortgage passes its five-year anniversary—at which point the Interest Act limits penalties to three months’ interest. Nevertheless, effective...

Fixed Rates Break the 2% Barrier Again

The Mortgage Report – May 20 “1″-handle Rates Return: Fixed rates have once again dipped below the psychological 2% level, albeit only three-year fixed rates. It’s a threshold that, when broken, often creates incremental demand for mortgages. Normally that demand comes from refinances and purchases, but with home sales down 57% nationwide, purchases have largely dried up. Credit tightening, a...

Historically Bad Housing Numbers

Mortgage Report – Weekend Edition Prices Tumble in April: The national average home price in Canada has plunged almost 10% in one month (April). That’s never happened before in CREA data going back to 1980. The next closest month-over-month drop was -7.6% in April 1989. The data was skewed partly by the GTA’s 11.8% nose-dive. Home Inventories Skyrocket: The total...

Today’s Value Zone: 3-year Rates

Mortgage Report – May 11 Hitting Triples: Borrowers would love to see 5-year fixed rates under 2% and eventually they’ll get there. But for now, banks are “reducing mortgage rate discounts to conserve profitability,” as Deloitte put it in a recent report. Alas, we’ll have to make do with the historically low rates we already have. And for all you...

The “News is Getting Better” Edition

Daily Mortgage Report – May 8 Unemployment Surprise: Unemployment is a key determinant of home prices. And while it may seem hard to put a record 2 million lost jobs (StatsCan’s estimate for April) in a positive light, when economists were predicting double that amount, it’s a relief. Canada’s unemployment rate surged to 13%, near the highest in modern data...