March 20th Mortgage Industry Update
March 20th, 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:
– The Teranet-National Bank Composite House Price Index, which measures changes for repeat sales of single-family homes, showed prices were down 0.1 per cent last month compared to January.
– RE/MAX report: Luxury home sales in the GTA, Oakville and Hamilton-Burlington have fallen by almost 60% year-over-year. 76 freehold and condominium properties in the GTA sold for more than $3M between Jan. 1 and Feb. 28, down from 180 sales during the same period last year.
– RBC Economic Outlook: After a year of rapid growth, the Canadian economy is expected to slow in 2018 amid the prospect of rising interest rates and lower consumer spending. GDP growth is forecasted to slow to 1.9% in 2018, followed by 1.6% in 2019, compared to 3.0% in 2017.
– Bank of International Settlements: Canadians have some of the highest levels of household debt in the world. Debt-to-GDP ratio (9.6) is dangerously high (“red zone”) and, if left unchecked, could lead to a financial crisis.
– Statistics Canada: Permits issued for multi-family in Ontario totalled $974 million, a 71% surge following a near-40% drop in December. Nationally the total value of residential permits issued was $5.32 billion, up 5.9% from $5.03 billion in December.
– CMHC: Pace of new home construction picked up in February compared with January. Seasonally adjusted annual rate increased to 229,737 units in February, up from 215,260 in January. Economists had expected the rate to come in at 216,600, according to Thomson Reuters. Toronto developers began work on 5,677 units during February, most of them multiple-unit projects like condos. That’s the strongest February, and the sixth-highest figure for any month, in records back to 1948.
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.