August 25th Mortgage Industry Update
August 25th, 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 remain stable.
Additionally this week:
– Economist Magazine: For 5th year, Canada takes 3 of top 5 spots in annual ranking of world’s most livable cities. 3) Vancouver, 4) Toronto, 5) Calgary
– RBC forecasts rising interest rates will see real estate sales drop by 10% over several years and the rise in prices slowing to 3.2% in 2016. Says there are two risks that currently threaten the Canadian economy: Further oil price shocks and condo overbuilding in Toronto. “Forecast calls for home resales to rise 5% to 505,400 in Canada in 2015, which would constitute the second-highest level on record”.
– Fitch ratings releases optimistic report about Canadian economy; AAA rating. However, estimates residential property prices 20% overvalued
– If re-elected, Stephen Harper has pledged half a million dollars to collect information on foreign investment in Canada’s housing market.
– CIBC World Markets economists believe that despite recent cut to interest rates the rate of new mortgages and other lending is “moderating”
– Survey conducted for 2015 BMO Harris Bank Homebuyers Report found 52% of Americans say they’re likely to purchase a home in the next 5 years
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.