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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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Budget 2023: What does it mean for housing finance?
The 2023 federal budget’s discussion of housing affordability largely focused on previously announced housing and housing affordability measures. There was one new housing measure: an additional $4 billion over seven years, starting in 2024-2025, for Indigenous Housing. Some other measures, while less immediate, will be of interest to mortgage brokers. 1.Lowering the criminal rate of…
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Fed hikes interest rates despite banking troubles
At the Federal Open Market Committee (FOMC) meeting on March 22, the US Federal Reserve increased interest rates by 25 basis points. The Fed’s view is that inflation remains too high and the labour market continues to be very tight; however, problems in the banking system are expected to result in tighter credit conditions for…
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