August 18th Mortgage Industry Update
August 18th, 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:
– PM Stephen Harper announced that re-elected Conservative party will increase Home Buyers’ Plan withdrawal limit from $25,000 to $35,000.
– Expansion of Highway 407, from Durham Region to Kawarthas, expected to revive some historically subdued property markets.
– BMO: 80% of Canadians in debt – on average $93,000. Most of this debt is for “smart #purchases” such as property and education. Mortgages account 49% of household debt, buying a car=46%, home renovations and repairs (33%) and education expenses (32%)
– CMHC reported on Tuesday that total starts in Calgary were down 43.1 per cent in July from a year ago. Canadian new housing starts dropped from an annualized 202,338 in June to 193,032. Analysts had been expecting 195,000.
– Fannie Mae: Percentage of U.S. consumers who think it’s a good time to buy a house hit an all-time low in July: down to 61%
– Canadian employment numbers increased by 6,600 jobs in July, leaving the unemployment rate at 6.8% for 6th straight month.
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.