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August 15th, 2014 Mortgage Industry Update

Interest rates slightly decreased with a major lender as promotional rates declined from 2.99% (5Y fixed) to 2.89%. Often we see a domino effect when it comes to lenders changing rates as they feel the need to remain competitive in the mortgage market. This may serve as a reason for a possible small interest rate decline between some lenders for the month of August.

Additionally this week:
– CMHC forecast indicates a soft landing for the housing market for the rest of 2014 and into 2015. [fancy_link link_text=”Learn More” url=”http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-08-13-0816a.cfm?utm_campaign=0.1%20Economic%20Data&utm_content=7306263&utm_medium=social&utm_source=twitter” float=”none”].

– Big banks see slowdown in insured mortgages, mainly due to buyers saving a large enough down payment. [fancy_link link_text=”Learn More” url=”http://www.whichmortgage.ca/article/big-banks-see-slowdown-in-insured-mortgages-181392.aspx?utm_source=twitterfeed&utm_medium=twitter” float=”none”].

– A rise in asset values (mainly real estate) pushes up the average Canadian’s net worth to $442,130. [fancy_link link_text=”Learn More” url=”http://www.theglobeandmail.com/report-on-business/rise-in-asset-values-push-up-canadians-wealth/article19983236/?utm_content=bufferc0f3f&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer” float=”none”].

– Government of Canada and Ontario announce $801M funding over 5 years to improve access to affordable housing. [fancy_link link_text=”Learn More” url=”http://www.cmhc.ca/en/corp/nero/nere/2014/2014-08-11-1100.cfm?WT.cg_n=TWT_AHC” float=”none”].

– July GTA home sales at near record levels. Prices up 7.5%, sales up 10% in comparison to 2013. [fancy_link link_text=”Learn More” url=”http://globalnews.ca/video/1497958/july-gta-home-sales-at-near-record-levels” float=”none”].

 
Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.