November 5th Mortgage Industry Update
November 5th, 2019 Mortgage Industry Update
The Bank of Canada announced on October 30th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019 and into early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– Statistics Canada: Real GDP only edged higher by 0.1% in August following an unchanged reading in July; on a 3-month rolling average basis, GDP was up 0.5% compared to 0.8% in July. Expert predictions were 0.2%.
– Finder poll: “Our report suggests we’re in store for a rate cut in December of this year or early 2020. Not only did a quarter of all economists on the panel think the Bank should have cut the rate this week, 100% think the next rate move will be down”. Highly likely for January.
– BILD: The benchmark price of new single-family homes in September was $1,081,175, down 3.4 % over the last 12 months. The benchmark price of new condominium apartments was $841,159, up 6.5 % over the last 12 months.
– BILD: 3,061 new home sales in September, up 73 % from 2018 and 6% above the 10-year average. Condominium apartments in low, medium and high-rise buildings, stacked townhouses and loft units accounted for 2,107 new home sales, up 39% from 2018 and 12% above the 10-year average.
– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– Veritas: Only half of those who own real estate as an investment are cash-flow positive, earning more money than the property costs them. About 18% are breaking even, while 33% said they are losing money on their investments. 84% of investors don’t plan on selling for now.
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.