May 1st Mortgage Industry Update
May 1st, 2018 Mortgage Industry Update
The Bank of Canada announced on April 18th 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% with most lenders, however some banks have started small increases. Fixed rates are slightly rising due to recent changes in the bond market.
Additionally this week:
– BILD: Single-family home prices, including detached, semi-detached and townhouses, rose 7.4% year over year in March to $1.207M, although they dropped about $12,000 compared to February. Condo prices increased 39.4% year over year to an average cost of $742,801.
– RBC Economics’ Canadian Housing Health Check: Volatility generated by the new stress test eroded the near-term risk profile of several major markets including Toronto, Vancouver, Calgary. Yet none of these markets appear to be at risk of an imminent severe downturn.
– PadMapper report: Toronto once again has the most expensive rent in the country for a one-bedroom apartment, as the average rent spiked 3.6% in April to $2,040. Cost for a two-bedroom apartment climbed even higher, rising 4.8% to $2,620.
– Canada’s median home price rose by an annualized 6.2% to $605,512 in the first three months of 2018 despite corrections in the Greater Toronto Area and Greater Vancouver, according to a recent survey by Royal LePage.
– Urbanation: 10,622 condo units in GTA that were offered for pre-sale before 2017 and still await construction. Altus Group Ltd: Since the start of 2017, 17 projects with 3,627 units, have been canceled. That’s up from 7 projects with 808 units, in 2016.
– Bloomberg Nanos Canadian Confidence Index slide has stopped after 14 straight weeks of declining consumer confidence. The index registered at 57.71 as of the week ending April 13, compared with 56.24 four weeks prior. The twelve month high currently stands at 62.17.
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.