Welcome to our Weekly Digest – stay in the know with recent news updates relevant to business and the economy.

The Bank of Canada is now less worried that lowering interest rates will cause home prices to rise.

The Bank of Canada is becoming less concerned that cutting its benchmark interest rate will lead to a sharp rise in home prices, as revealed in the minutes from its most recent meeting. Recent data indicates a cooling housing market, with slower price growth and decreased demand, which has eased the Bank’s fears of triggering a new surge in prices.

Despite this shift in outlook, the Bank remains cautious and continues to closely monitor the housing market. They believe that rising borrowing costs and tighter lending conditions will help keep the market in check, ensuring that any policy changes, including rate adjustments, support overall economic stability.

Wall Street has calmed down as U.S. stocks have steadied after recent ups and downs.

Stocks closed higher on Wall Street, marking a positive turnaround after the market’s biggest drop in nearly two years. The quick rebound suggests that investors regained confidence, with many seeing the dip as a buying opportunity, which helped stabilize prices.

Despite the recent turbulence, the higher closing numbers indicate that the market remains resilient. The recovery reflects ongoing optimism among investors, even as they navigate occasional setbacks, highlighting the market’s overall upward trend.

The unemployment rate stayed the same in July, but the jobless rate for young people kept increasing.

Canada’s economy shed 2,800 jobs in July, but the unemployment rate remained steady at 6.4 per cent, according to Statistics Canada. This stability suggests that while job losses occurred, the labor market has not seen significant improvement, reflecting ongoing challenges as the economy recovers from the pandemic.

The unchanged unemployment rate, despite the decline in jobs, indicates that the labor market remains in a delicate balance. The data highlights the uncertainties facing various sectors and will likely play a role in shaping future economic forecasts and policy decisions.

Airlines are leaving small cities, cutting off important connections to the rest of Canada.

The Canadian Airports Council reports that the 30 largest airports in Canada have almost returned to pre-pandemic passenger capacity, operating at 98 per cent of 2019 levels on average. This strong recovery reflects the rebound in air travel demand as restrictions have eased and more people are flying again.

However, smaller airports are lagging behind, with the next 30 only reaching about 70 per cent of their pre-pandemic capacity. This slower recovery highlights the uneven impact of the pandemic on air travel, with major hubs benefiting more from the resurgence in international and long-haul flights, while smaller airports, reliant on domestic and regional traffic, continue to face significant challenges.

First-time homebuyers can now get a 30-year mortgage.

First-time homebuyers purchasing newly built homes can now qualify for a 30-year mortgage, giving them an extra five years to pay off their insured mortgage. This change aims to ease the financial burden and make homeownership more accessible by allowing buyers to spread their payments over a longer period, reducing their monthly commitments.

However, this 30-year amortization option is limited to insured mortgages on newly constructed homes. For other insured mortgages, the amortization period remains capped at 25 years, highlighting the government’s focus on supporting new homebuyers while maintaining responsible lending practices across the broader market.

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