January 26th, 2016 Mortgage Industry Update

The Bank of Canada announced on January 20th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Additionally, almost all fixed rates have climbed and stabilized, as compared to the end of 2015.

Additionally this week:
– Statistics Canada released its year-end review for 2015, which showed the country’s annual average increase in inflation was 1.1 per cent.

– Stats Can: Ontario added 23,000 jobs in December.

– Bank of Canada maintains overnight rate target at 1/2 per cent. Projects Canada’s economy will grow by about 1 1/2 per cent in 2016 and 2 1/2 per cent in 2017.

– Ipsos Reids’ survey: Home prices will continue to increase in 2016, with the average price expected to fall between $655,000 and $665,000. Also found that 12% of GTA households are very likely to purchase a home over the next year, and that a very small share of intending buyers were planning on down payments of between five and 9.9 per cent.

– TREB: “After record year for home sales in 2015, another strong year is forecast for 2016; between 96,500 and 105,000 home sales”.

– A few rate changes:
First National cuts their 5 year fixed promotional mortgage rate to 2.69%, and increases their 5 year variable to 2.40%.

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.

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