March 27th Mortgage Industry Update
March 27th, 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:
– Calgary + Montreal on track to pass Toronto and Vancouver as Canada’s fastest growing luxury real estate market this year as rising consumer confidence boosts demand for homes over $1M. Montreal up by 20% in the first two months of this year. GTA down by 55%. Vancouver down 39%.
– Conference Board of Canada’s latest Canadian Outlook: While the economy was firing on all cylinders in 2017, it slowed toward the end of the year. Expected to continue this year, with the economy forecast to expand by a more sustainable 1.9%, down from 3.0% in 2017.
– OFSI: Canada’s uninsured mortgage market reached an 8 year high in January. The share of loans that don’t need insurance soared by almost a fifth in January, to 53% of the $1.13 trillion mortgages from Canada’s federally regulated banks.
– The latest monthly figures from the Canadian Real Estate Association showed that sales volume was down 16.9% in February compared with a year ago, and down 6.5% compared with January.
– CREA: Canadian home sales fell 16.9% in February, while the national average sale price dropped 5% compared to a year earlier. National home sales declined 6.5% from January to February, the second consecutive monthly decline and the lowest reading in nearly five years.
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.