Last week brought little in the way of new housing market data but there was no shortage of economic news which was important for the Canadian real estate and mortgage markets.

After the Bank of Canada’s surprise rate cut on January 21st, Canadian banks lowered their Prime rates to 2.85%, passing on to borrowers only part of the cut to the Bank Rate. Canadian bond yields plunged sharply last week with the benchmark five year yield ending the week at 0.62%. The ten year yield closed the week at 1.27% and the thirty year yield closed below 2%. The market appears to have already “priced in” another Bank of Canada rate cut. The Bank’s next meeting date is March 4th.

Statistics Canada released revised December and 2014 year-end data last week. The Canadian economy created only 121,000 jobs last year – 65,000 fewer than was initially reported. The year-end unemployment rate was revised upwardly from 6.6% to 6.7% as a result. 

Statistics Canada also reported November GDP results last week and that news was also disappointing as the Canadian economy shrank 0.2% from October. Weakness in the energy sector and in manufacturing output accounted for the contraction

Canada’s major real estate boards will report January sales data this week.