March 6th Mortgage Industry Update
March 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:
– Real Estate Board of Greater Vancouver: Home sales in Metro Vancouver fell 14.4% below the 10-year average in February. 2,207 homes sold last month. Down 9% from the same time last year.
– The 30 analysts polled by Reuters unanimously forecast the central bank will hold its benchmark rate at 1.25 per cent at its next announcement on March 7.
– Federal government reveals 2018 budget, complete with $1.25 billion in funding for a program offering low-interest loans to builders of rental housing. Toronto Region Board of Trade says the money won’t be enough to make a dent in the GTA’s rental shortage.
– CBRE: Commercial property deals in Canada reached a record for a second consecutive year and show no signs of slowing as investors continue seeking high-yield assets in a haven from global turmoil. Transactions last year totalled about $43B, up from 2016’s record of $34.7B.
– Evidence of mortgage fraud amid surging home prices and household debt has prompted S&P Global Ratings to lower a key risk metric for Canadian banks. S&P lowered the Canadian banks’ economic risk level to 3 out of 10.
– TD economist: New measures to cool BC’s resale market might cause a 5 to 10% decline in home sales. Meantime, he predicts prices will decline by about 5% from peak-to-trough.
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.