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April Inflation – The Core of the Matter
A jump in headline inflation has caused a rethink in the market about a possible rate increase. The bond market is now leaning towards another 25-basis point increase this summer. April inflation data showed an acceleration in prices. The headline Consumer Price Index (CPI) figure rose 4.4% year-over-year in April, up from 4.3% in March….
Read moreHousing Market Rebounds
CREA reported a jump in existing home sales of 11.3% (in seasonally adjusted terms) from March. While sales were still down almost 20% from a year ago, activity is moving closer to pre-pandemic levels. The ratio of sales to new listings shot higher to 70.2%, with activity in the B.C. Lower Mainland and Greater Toronto…
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The Fed and Bank of Canada are on Hold for Now
The Fed hits the pause button The US Federal Reserve raised interest rates last Wednesday (May 3) for the 10th-straight meeting, bringing rates above 5% for the first time since 2007. Ahead of this decision, the market had been focused on whether this would be the final rate hike of this current cycle. With the federal funds…
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A Needed Slowing of the Economy
At its meeting earlier this month, the Bank of Canada left its key policy rate at a 15-year high of 4.5% for a second time in a row. The decision to hold came after discussing a possible rate rate increase due to stronger-than-expected growth, a tight labor market and concerns about inflation in the services…
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The Road to 2% Inflation
Inflation targeting – How did we get here? In the long-run, inflation is caused by the central bank’s monetary policy, or as Milton Friedman said, “inflation is always and everywhere a monetary phenomenon.” In the short-run, however, other factors such as energy prices, business cycles, economic shocks and crises also affect inflation. Since it has…
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Lender’s Title Insurance – An Important Risk Management Tool
At CMI, we require lender’s title insurance on the properties we lend upon. A form of indemnity insurance, title insurance protects lenders and homebuyers from defects in a title to a property. It is paid for by the borrower. A clear title is necessary for any real estate transaction. Title insurance will protect the lender…
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Changing the Canada Mortgage Bonds Program
The recent federal budget stated “[t]he government intends to undertake market consultations on the proposal to consolidate the Canada Mortgage Bonds within the government’s regular borrowing program, including on an implementation plan that would ensure stable access to mortgage financing. The government will return in the fall economic and fiscal update on this matter.” Background…
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