April 3rd Mortgage Industry Update
April 3rd, 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:
– A recent Sotheby’s report on the luxury sector shows sales of $1 million-plus homes in Montreal increased by 20 per cent in the first two months of 2018. Foreigners accounted for just 1.4% of housing deals in Montreal last year.
– RBC is predicting 1.9 per cent annualized GDP growth for the first quarter of 2018, while TD is predicting an even smaller 1.4 per cent rise. That’s in comparison to the 4 per cent increase recorded in the first quarter of 2017.
– Canadian Bankers Association: The rate of mortgages in arrears in Canada has fallen to its lowest in more than a decade. Just 0.24% of mortgages were three months or more past due in November of 2017. In Ontario, the arrears rate is at an all-time low 0.09%.
– Canadian inflation picked up more than analysts expected in February to the fastest in more than three years as signs point to price pressures continuing to build. Accelerated to an annual pace of 2.2% in February, the most since 2014, from 1.7% a month earlier.
– BMO Report: Perennially hot markets of Toronto and Vancouver are largely driven by the impact of millennial home buyers creating price increases in the condo and townhouse markets. These regions are also supported by strong economies, good demographics, high tech/high salary jobs.
– BILD CEO: Condo apartments and stacked townhouses, which had an average selling price of $729,735 in February, continue to dominate the new housing market, accounting for nearly 1,900 of the 2,159 new homes sold.
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.