February 12th Mortgage Industry Update
February 12th, 2019 Mortgage Industry Update
The Bank of Canada announced on January 9th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada will very gradually increase rates in 2019.
Additionally this week:
– Canadian Real Estate Association showed that national home sales in 2018 declined by 11.1% annually. This represented the greatest shrinkage ever since the recession in 2008, immediately following a 4.64% shrinkage just the previous year.
– BILD: Sales of new homes fell to 25,161 in 2018 from 2017, lowest annual number since 2000. Single family homes down 50% to 3,831 from 2017, 74% below 10 yr average. Price down 6.7% to $1,143,505. Condos sales down 38% to 21,330, 4% below 10 yr average. Price up 11% to $796,815.
– Provincial government has launched a consultation considering the disclosure of the details of competing offers to other bidders in a multiple offers situation for the sale of a home. “May benefit both buyers and sellers by making this process more transparent”.
– Marcus & Millichap’s Report: A confluence of factors, including rising interest rates, new mortgage rules will result in fewer Canadians seeking homeownership than rentals this year. Rental demand to increase as homeownership is delayed with increased time required for savings.
– The provincial government has proposed changes to the policy that manages growth in our region, the Growth Plan for the Greater Golden Horseshoe Area. Calls for varying numbers of residents and jobs per hectare, depending on the municipality, whereas currently there is a standard.
– Mortgage Professionals Canada: Homeowners’ mortgage rates averaged 3.09% in 2018, up from 2.96%. For borrowers who took out a mortgage on a home they purchased in 2018, the average rate was higher at 3.31%. Those who renewed existing mortgages averaged 3.28%.
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.