September 5th Mortgage Industry Update
September 5th, 2017 Mortgage Industry Update
The Bank of Canada announced on July 12th that it’s overnight lending rate will increase from 0.50% to 0.75%. The prime rate at almost all institutions has increased from 2.70% to 2.95%, the first increase in 7 years. Fixed rates now remain stable.
Additionally this week:
– Stats Can: Q2 GDP grew at annualized 4.5%,topping forecasts for 3.7% and making for the best pace of growth since the third quarter of 2011.
– Bloomberg Nanos Canadian Confidence Index showed continuous decline for August. Fell from 61.19 on Aug 11 to 59.68 in week ending Aug 25.
– CMHC: Typical Canadian insured home buyer had average mortgage debt of $255,014 and credit score of 752, representing a strong portfolio.
– CMHC: New regulations introduced last fall decreased the size of the country’s insured mortgage market by about 33% year-over-year in Q2.
– Further increases in mortgage regulations could see a significant cut in housing demand (5%-10%) according to a new report from TD Bank.
– TransUnion: Average mortgage loan balance jumped nearly 5% year-over-year to $198,781, Serious delinquincies (60 days+) dropped to 0.56%.
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.