July 14th Mortgage Industry Update
July 14th, 2020 Mortgage Industry Update
The Bank of Canada announced on June 3rd that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The possibility of further rate reductions remains unclear at this time as the economy deals with the COVID-19 pandemic.
Additionally this week:
– Household credit stood at $2.29 trillion in May, which was essentially flat from the month prior and 3.6% higher annually. The year-over-year pace was the slowest since June 2019, Better Dwelling reported.
– TRREB: Detached properties were up 14% in June from 2019 to $1.52 M and semi-detached properties led the way by rising an incredible 22% – up to an average of $1,287,832.
– A significant fraction of Canadian business tenants are expecting their revenues to bounce back to pre-pandemic levels within 12 months, according to a recent survey by the Bank of Canada.
– Statistics Canada: Household savings have reached a near-20-year high recently, potentially galvanizing future market activity. The savings rate nationwide went up to 6.1% in the first quarter, which was 69.44% larger than the Q4 2019 level and 165% higher on an annual basis.
– TRREB: Average price of GTA home hit $931k in June; new all-time high that surpassed previous April 2017 market peak of $921k. Total home sales (8,701) fell 1.4% in June from 2019, compared with 53.7% drop in May. Listings rose 2.1% year-over-year, versus a 53.1% decline in May.
– In May, Canadian mortgage credit reached a new record high of approximately $1.68 T, accompanying a spike in deferrals. Bank of Canada data showed that outstanding balance of mortgage debt grew by 0.6% from April and 6% from May 2019, highest annual increase since July 2017.
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.