February 6th Mortgage Industry Update
February 6th, 2018 Mortgage Industry Update
The Bank of Canada announced on January 17th that it’s overnight lending rate will increase to 1.25% from 1.00%. The prime rate has thus increased to 3.45% with most lenders. The 5 year posted rate has also changed to 5.14% with most lenders.
Additionally this week:
– Just 1 in 4 surveyed for CMHC’s 2018 Prospective Home Buyer Survey said that an interest rate would make them very likely to delay purchasing a new home.
– TREB forecasting sales of 85,000 to 95,000 homes this year, down from 92,394 last year. Prices are forecast at $800,000 to $850,000, the midpoint of which would be up slightly from the $822,681 average recorded in 2017.
– Dallas Fed: Canadian real estate prices dropped the most since the early 1990s, fell 3.8 per cent in Q3 2017. First drop since 2012, largest since Q1 1991. Largest single quarter decline in the world according to global index.
– TREB: The average rent for one-bedroom condo apartments went up by 10.9% on a year-over-year basis in the 4th quarter, up to $1,970. Meanwhile, the average two-bedroom condom apartment rent increased by 8.8% over the same period, up to $2,627.
– Vancouver is the least affordable city in Canada and the third least affordable in the world, according to the Demographia International Housing Affordability Survey.
– The number of single-family homes sold last year, 7,714 — including detached, semi-detached and town houses — was down 58 per cent from 2016 and 50 per cent from the 10-year average, according to BILD statistics.
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.