August 23rd Mortgage Industry Update
August 23rd, 2016 Mortgage Industry Update
The Bank of Canada announced on July 13th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have stabilized.
Additionally this week:
– Vancouver, Toronto, Calgary made the Economist’s top-10 most livable cities list. Came in the 3,4,5 spots in list out of 140 major cities.
– Latest official figures: Victoria outstripped every other Canadian city in terms of home sales in July; up 20% compared to last year.
– Teranet-National Bank Composite House Price Index: Canadian home prices up 2.0% month-over-month in July. Prices up 10.9% year-over-year.
– Equifax Report: Millenial delinquency rates on the rise; increased 11.7% y/y in Q2 2016 for total of 1.8%, average debt up by 2.1% = $8,203. Consumer total debt (excluding mortgages) on the rise. Increase of 3% from Q1 2016 to Q2 2016 = $1.666T vs. $1.618T.
– Latest data from National Bank’s House Price Index revealed that in Toronto alone, prices have grown by around 3.1% every month, CBC report.
– CIBC economists: Toronto housing affordability crisis needs to be tackled. Upping minimum down payments, increasing qualification rates.
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.