July 28th Mortgage Industry Update
July 28th, 2015 Mortgage Industry Update
The Bank of Canada announced on July 15th that it’s overnight lending rate will be cut to 0.50%. The prime lending rate at most lending institutions thus decreased to 2.70%. Additionally, most fixed rates are rumoured to decrease in due time, as the overnight rate influences the bond market.
Additionally this week:
– Lenders cut their prime rate to 2.70%, giving us the 5 year promotional variable mortgage rate of 2.00%!!!
– Foreign investors predicted to take advantage of the low dollar and drive foreign investment into Canadian real estate.
– According to CAAMP’s spring mortgage report, 14% of home buyers get their mortgage from credit unions, life insurance, trust companies.
– Finance minister Joe Oliver told reporters Tuesday Canada is in period of slow growth rather than contraction. No mention of the “R” word.
– Fitch ratings believes Canadian housing market is at risk of only slight correction: “Fitch continues to expect a soft landing nationally”
– US home sales sitting at an 8 year high, however foreign investing down due to the rise of their dollar relative to foreign currencies.
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.