Experts react to the Bank of Canada raising rates for the first time since 2018<\/a><\/strong>\r\n <\/div>\nRising property prices continue to be one of the biggest roadblocks for those looking to enter homeownership. Forty-four per cent of respondents said that high home values were a barrier to homeownership according to TransUnion\u2019s most recent Consumer Pulse study. Forty-two per cent cited not having enough for a down payment as their biggest hurdle, while 30 per cent of respondents pointed to a lack of stable employment.<\/p>\n
Consumers return to pre-pandemic credit card spending<\/h3>\n
In addition to mortgages, the credit card market has also been experiencing growth.<\/p>\n
TransUnion stated that credit participation increased 1.8 per cent year-over-year in Q4-2021, a trend that was started as more consumers opened new products and leveraged existing credit. Above-prime credit score consumers supported this growth who showed a 4.4 per cent increase in credit participation from the previous year. Credit card spend rates were up 20 per cent annually as the economy reopened and consumers returned to pre-pandemic spending patterns, noted TransUnion.<\/p>\n
\u201cAs the latest wave of COVID recedes and the economy expands, consumers are reverting to pre-pandemic credit behaviours and lenders are active in seeking growth opportunities,\u201d said Matt Fabian, director of financial services research and consulting at TransUnion, in the report. \u201cLenders have some catching up to do after the pandemic disrupted volumes and balances, and consumer demand is picking up.<\/p>\n
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<\/a>Photo:\u00a0ungvar<\/a> \/ Adobe Stock<\/em><\/p>\n