October 25th Mortgage Industry Update
October 25th, 2016 Mortgage Industry Update
The Bank of Canada announced on October 19th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Almost all fixed rates remain stable at this point despite new recent mortgage rule changes.
Additionally this week:
– Moody’s Analytics: CDN real estate sector will experience more relaxed pace growth over next 5Y, rumors of massive crash greatly exaggerated.
– National Bank: Home prices in Vancouver and Toronto facing imminent correction. 10% drop over next 12 months in Vancouver, 3% in Toronto.
– TD Bank: New mortgage rules for portfolio insurance will mean higher costs for money. This could mean higher mortgage rates for clients.
– CIBC economist: “New mortgage rules should reduce BoC’s fear rate cut would fuel more worrisome housing bubble, can open door to a rate cut”
– Bank of Canada maintains overnight rate target at 1/2 per cent. Good news for variable rate holders! No change in rates! Bank of Canada not entirely sure how much new mortgage rules will slow housing market, despite releasing forecasts in Monetary Policy Report. Governor: housing sales expected to be reduced in the near term due to the new rules and that it may spur construction of smaller homes.
– TREB: Number of real estate transactions in the Greater Toronto Area rose 21.5% in September, compared to last year.
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.