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Market Monitor

We keep our finger on the pulse of the mortgage investment market to provide you with the latest news and trends from our team of experts. Read our blog to get the latest on mortgage investing so you can invest with CMI.

30 May 2024

What Will End Canada’s Home Affordability Crisis?

The Bank of Canada has not yet declared victory over inflation. While we are likely close to seeing the first rate cut by the central bank, potentially as early as June or July, the market remains in a state of suspended animation, facing numerous challenges: Housing prices, although off their pandemic highs, remain elevated and…

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27 May 2024
Repo Market Trading – Nothing to See Here

The Bank of Canada produces a Financial Stability Report to assess the resilience of the domestic financial system and identify risks that could undermine its stability. One item highlighted in the report is the growth of asset managers’ leverage over the past 12 months, primarily driven by an increase in hedge fund repo activity. These…

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27 May 2024
Addressing Affordability Challenges – Longer Term Mortgages are not a Panacea

Loan characteristics vary significantly across nations, with differences such as variable rate loans, foreign exchange loans, or interest-only loans. For example, in countries like Poland, variable rate products are predominant, whereas in Belgium and Denmark, most mortgages have fixed-rate periods exceeding ten years. A recent report by Desjardins suggests that we would not have seen…

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21 May 2024
Inflation Cooled in April. Is it Enough to Sway the Bank of Canada?

The headline annual inflation number for April was 2.7%, which was broadly in line with expectations and marked the fourth consecutive month of easing. The better news was that key core inflation measures all came in below 3%. Each measure rose by 0.1% month-over-month, and their three-month trends were below 2% on an annual basis,…

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17 May 2024
No Immediate Relief in Sight for Soaring Rents

In April, average asking rents for all residential property types in Canada remained near record highs, reaching $2,188 per month, marking a 9.3% increase compared to the previous year. However, there were indications of easing in certain markets within the Greater Toronto and Hamilton Area (GTHA) and surrounding areas, particularly in 1-bedroom and, in some…

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14 May 2024
Where are the Current Risks to the Mortgage Market?

Mortgage holders have been anxiously waiting for the Bank of Canada to cut interest rates. The increase of 90,400 jobs in April – five times what analysts expected – has heightened concerns that the Bank will continue to wait before lowering rates.  While the economy has not slowed as much as expected, there’s growing economic…

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8 May 2024
Who Will Build the New Homes We Need?

The government aims to build 3.87 million new homes by 2031 through its housing strategy, which focuses on increasing construction of both owner-occupied and rental housing construction. However, a major constraint to achieving this ambitious target is finding enough skilled workers. RBC estimates that Canada could need more than 500,000 additional construction workers to meet…

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