March 13th Mortgage Industry Update
March 13th, 2018 Mortgage Industry Update
The Bank of Canada announced on March 7th that it’s overnight lending rate will remain at 1.25%. The prime rate thus remains at 3.45% with most lenders. The 5 year posted rate remains at 5.14%. Almost all fixed rates remain stable without any significant changes.
Additionally this week:
– Bank of Canada maintains overnight rate target at 1 1/4 per cent. No change in prime rates! Good news for variable rate mortgage holders!
– John R. Taylor, who formerly headed what was then the world’s biggest currency hedge fund, says his analysis of statistical patterns projects the loonie to weaken about 20% to $1.60 per U.S. dollar by the end of next year. It hasn’t been that weak since August 2002.
– RBC CEO: “We do not need foreign capital using Canadian real estate as a piggy bank”. The influx of foreign capital is greatly distorting Canada’s already pressured housing market and aren’t the kind of investment the country needs.
– Statistics Canada: Economy decelerated more than expected in the second half of 2017, amid signs indebted households have begun slowing down spending.
Grew at an annualized pace of 1.7% in Q4, versus economist expectations for 2%.
– TREB: Toronto sales fell 35% in February from 2017 to 5,175 units. It was the weakest month of sales for February since 2009. Average sales price for all housing types down 12.4% to $767,818. Detached home prices down 17% to $1,000,736.
– The world’s biggest money manager – BlackRock – is breaking from consensus, saying the Bank of Canada will increase interest rates only once more in 2018 — if that.
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.