Canadian Mortgage Trends’ Post

📈 Canada’s unemployment rate has surged to 6.1% in March, up from 5.8% in February. This is the most significant increase we've seen since the summer of 2022. 🏦 Despite this, the swap market is showing less than a 20% chance of a rate cut by the Bank of Canada next week. However, expectations for a cut in June have increased dramatically post the recent data release. 💵 The Canadian dollar took a hit too, dropping half a cent, indicating market anticipation of a potential rate cut. Stay updated on these developments as they could impact investment and financial planning strategies. #EconomicUpdate #CanadaJobsReport #FinancialPlanning

📉 Canadian Unemployment Alert 📉 National Bank warns that Canadian unemployment could exceed 7% if interest rates aren't cut soon. It's crucial for policymakers to consider the broader economic impact as we navigate these challenging times. #Economy #Canada #Unemployment #InterestRates

Bank of Canada’s Tightrope Act: Inflation, Wage Control, and the Forgotten 6.4% I may not be an economist or a banker, but I have some thoughts on Bank of Canada's orchestrated interest rate spectacle. Inflation vs. Free Market: So, the Bank of Canada (BoC) wants to combat inflation. Fair enough. But here is the kicker: Their approach feels like a tightrope walk between a “free market” and a “capitalism” that has had one too many lattes. Decision makers at the bank keep waving a banner that reads, “We’re doing this for your own good!” But is it really? Unemployed Canadians, Immigrants, Permanent Residents, International Students on Post Grad Work Permit: Let us talk about the 6.4%, which I guarantee is much higher, who wake up every morning, polish their résumés, and dive headfirst into the abyss of joblessness. They are not just numbers; they are people with rents/mortgages, families, and dreams. Real people are teetering on the edge. Houses hang in the balance, hopes waver, and dreams fade like yesterday’s TikTok trend. But fear not! The BoC has a plan. Or does it? Perhaps the BoC should open its tightly locked doors and employ all the 6.4%. Are they ensuring that the 6.4% do not lose their homes? Are they whispering sweet reassurances to the unemployed? No, they are too busy adjusting interest rates and playing economic Jenga. And guess what? In 2023, the average job hunt lasted a whopping 17 weeks. That is 119 days of uncertainty, sleepless nights, and existential crises. And it takes much longer to find a job in 2024. Perhaps the BoC needs a reality check and perhaps it is time for a reassessment. Let us untangle this mess, stitch up the safety net, and give the 6.4% a fighting chance. So, BoC, PLEASE listen up: You are not just balancing numbers; you are juggling lives. Get it right. Because when the dust settles, the 6.4% will be here, watching, waiting, and wondering if your tightrope act was worth it. #Growth #Economics #Economicgrowth #Economicdevelopment #Finance #Inflation #InterestRates #MonetaryPolicy #FreeMarket #Capitalism #Unemployment #JobSearch #LaborMarket #WageGrowth #BankofCanada #CentralBanking #MonetaryDecisions #EconomicStimulus #shiftingparadigm #shatteringthemyth #reimagined #inspiredrecruiter #candidateagent #scalablehr #talentnow #kitchentablehr #surreystaffing

Canada’s unemployment rate could surpass seven per cent this year if the Bank of Canada delays interest rate cuts, according to a National Bank economist. Urgent action may be needed to prevent this outcome. Stay informed: [Link to the article] #Canada #Unemployment #Economy

The latest numbers on Canada’s job market have moved the needle on when some economists think the Bank of Canada will make its first interest rate cut. Labour numbers released last Friday were unexpectedly strong, with a gain of 37,000 jobs that more than doubled forecasts. That prompted some economists who predicted the first Bank of Canada cut in April to push back their forecasts until June. https://lnkd.in/gXRYJjzt #jobmarket #economy #interestrates

Bottom Line Economists are still divided on whether the Bank of Canada will cut by 25 or 50 basis points. Next week's inflation data, released on Tuesday, October 15, will become all the more critical. The numbers are expected to be good, meaning low. The economy slowed markedly in the third quarter, and monetary policy remains overly restrictive. Stay tuned! #interestrates #bankofcanada #inflation #mortgages #torontorealestate #ontariorealestate #realestateinvestor

📉 Will Rising Unemployment Push the Bank of Canada to Cut Rates Sooner? Canada’s unemployment rate jumped to 6.4% in June, with a net loss of 1,400 jobs, which was much worse than expected. Key sectors like transportation and warehousing saw major job losses, while accommodation and food services gained jobs. Youth (15-24) and new immigrants are the most affected, with unemployment rates rising to 13.5% and 12.7%, respectively. Economists note the imbalance between job creation and population growth. The Bank of Canada is expected to consider these numbers for its next rate cut decision. However, they might wait until September. Despite rising unemployment, wages are still growing, which might delay rate cuts. In June, average hourly wages grew by 5.4%. Key economic data, including June inflation results, will be crucial for the Bank’s decision on rate cuts. While the job market is weakening, the rate cuts will likely be gradual, not immediate. Call or text 416-906-8713 mattpukas.com

Bottom Line The next Bank of Canada announcement date is on March 6th. There is plenty of data yet to come out before then. But judging from what we already know, the economy is not in recession, and wages are still rising too rapidly. Housing markets are already beginning to heat up, and the US economy is running red hot. The strong US inevitably spills into Canada. This gives the BoC more time to ponder inflation. So far, there is no hurry for them to cut rates.  

"Canada's Labour Market Struggles: Unemployment Rate Could Exceed 7% in 2024" Unemployment Rate Warning: Canada's unemployment rate could hit or exceed 7% this year if the Bank of Canada (BoC) does not cut interest rates soon, warns a National Bank economist. Labour Market Struggles: According to Taylor Schleich, director of economics and strategy at National Bank Financial Markets, the labour market is "gasping for air" and should not be ignored due to a focus on inflation. July Rate Cut Probability: Schleich suggests a higher probability for a July rate cut unless the June CPI report is disastrous. May Inflation Print: Despite May’s less-than-ideal inflation figures, Schleich believes the focus should be on the overall economic context, with inflation behaving better than in the past. Rising Unemployment Rate: Without intervention, Canada could see a 7%+ unemployment rate if current labour market trends continue to worsen. June Interest Rate Cut: The Bank of Canada cut interest rates in June, reducing the benchmark rate to 4.75%, the first cut in over four years. July Rate Announcement: The next interest rate announcement is on July 24, with the market split on whether another cut will occur. June Labour Market Data: June’s data showed a net loss of 1,400 jobs and an increase in the unemployment rate to 6.4%, the highest increase among G7 countries since a low under 5% in 2022. NAIRU and Current Rate: Economists believe the non-accelerating inflation rate of unemployment (NAIRU) is around 6%, with Canada’s current rate slightly above this and rising quickly. Future Projections and Wage Growth: Projections show unemployment hitting 7.5% next spring without rate cuts. Wage growth, a lagging indicator, is expected to slow as labour market conditions soften. #mortgage #mortgagerates #mortgagebroker #mortgage #refinancemortgage #rental #Refinance #refinance #reversemortgage #reversemortgage #reversemortgages #debts #mortgagerates #badcredit #badcreditok #badcreditscore #badcreditmortgage #housingmarket #housingmarketupdates #housingmarket #creditcard #creditcards #fixedrates #bankofcanada #housingaffordability #CanadianHousingMarket #canadianhousingmarket #Inflation #inflation "Planning your dream space? We want to crunch the numbers for your mortgage with precision. Your future starts here – seize the opportunity!" Misbah Hyder Mortgage Agent Level 2 (M20002316) Rate Shop Mortgage Email: info@4msconsulting.com Cell:1-306-276-3048 https://lnkd.in/gbCBPyUa https://lnkd.in/gyucsPd4

With the unemployment rate on the rise and the labour market weakening, there's growing pressure for the Bank of Canada to cut interest rates soon. A 7 per cent unemployment rate looms if no action is taken. Read more here.