Last week got off to a good start with the release of May sales data from the Canadian Real Estate Association. May was a good month for re-sales in most Canadian markets. Economists at Canadian banks were generally encouraged by the market's performance in May. Bank of Montreal suggested that The Ceiling Can't Hold Us and TD Bank suggested that the impact of changes to mortgage insurance rules tend to be temporary and this time has not been different.
Then the US Federal Reserve Chairman sent financial markets reeling by announcing the potential beginning of the end of the economic stimulus program known as Quantitative Easing. Stock markets were down sharply and the benchmark 5 year government bond yield climbed over 1.80% on Friday.
Are Canadians real estate obsessed? Results of a survey done for the online real estate service provider Zoocasa seem to say so. The obsession is most severe in the Toronto area but has strength across the country.
Our Feature Article looks further at the CREA data and the recent movement in fixed term mortgage rates.
Joel Sida from MCAP newsletter
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