Budget 2024 – A New Housing Road Map
Budget 2024 focused heavily on housing. Budgets are as much about communication as they are about action. This one is a broad-based program that attempts to cover a range of housing initiatives. Notably, the budget drew attention to the supply challenges stemming from rapid immigration growth. While highlighting all federal measures that are planned, it…
Read moreThe Fed’s Housing Problem
Hotter-than-expected inflation data is fueling concerns over the timing and frequency of potential interest rate cuts by the Fed this year. The Fed is highly data dependent and persistent inflation has increased the chances of a no-landing scenario where inflation remains high or even accelerates despite efforts to tame it. Austan Goolsbee, the head of…
Read moreImproving Efficiency in the NHA MBS Market – Transparent Pricing is Paramount
The March 27th Housing Affordability Watch outlined several initiatives CMHC could undertake to improve efficiency in the housing finance system and address affordability issues in Canada’s housing market. This is the third instalment in a series that explores these options in detail. The Canada Mortgage Bonds Program (CMB) was established in large part because of…
Read moreBank of Canada Continues to Hold on Rates – For Now
As expected, the Bank of Canada held its policy interest rate at 5% for the sixth consecutive time at its April 10 meeting. The Bank’s statement reflected a more subdued tone, highlighting a slowdown in underlying inflation and a loosening of labour market conditions. While slowing inflation is “becoming more broad-based across goods and services,”…
Read moreDeveloping Infrastructure to Support Insured Mortgage Repo
The March 27th Housing Affordability Watch outlined several initiatives CMHC could undertake to improve efficiency in the housing finance system and address affordability issues in Canada’s housing market. This is the second instalment in a series that explores these options in detail. The Federal Government has emphasized the importance of investing in infrastructure to support…
Read moreLabour Market Weakens, but not Enough to Prompt the Bank of Canada to Move
After a solid start to 2024, the labor market weakened in March. The unemployment rate rose to 6.1%, its highest level since November 2021, indicating a growing level of slack in the economy. Rather than the expected gain of 25,000 jobs, the economy shed 2,200 jobs in March. The jump in the unemployment rate –…
Read moreImproving Efficiency in the NHA MBS Market – Lessons from the US
The March 27th Housing Affordability Watch outlined various initiatives CMHC could undertake to enhance the efficiency of the housing finance system to improve affordability in Canada. This is the first in a series of installments where we’ll explore each of these options in detail. CMHC plays an important role in the financing of residential mortgages….
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