April 18th, 2017 Mortgage Industry Update

The Bank of Canada announced on April 12th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Both fixed and variable rates are generally stable within the market at this point in time.

Additionally this week:
– Teranet-National Bank House Price index up 13.5% in March due to strong year-over-year increases in prices. Largest jump in 10 years.

– Bank of Canada maintains overnight rate target at 1/2 per cent. Good news for variable rate mortgage holders — no change in rates! Warns that climbing real estate prices in the Toronto area appear to now be driven, in part, by speculation. Economic growth expected to expand by 1.9% in 2018, down from January forecast of 2.1%, and to hit 1.8% in 2019.

– CMHC: Annual pace of housing starts increased more than expected in March and hit their highest level since September 2007.

– Statistics Canada job survey: 19,400 net jobs gained in March, vast majority full time. Unemployment rate up to 6.7% from 6.6% in February.

– Bill Morneau Calling meeting with Ontario minister Charles de Sousa + Mayor Tory. Concerned about high household debt, housing affordability.

– TREB: Cost of real estate soared again in March, with the average price jumping 33.2% from the same month last year and nearly 5% from Feb. Average price in the area rose to $916,567 last month, up from $688,011 in March 2016 and up 4.6% from $875,983 in February 2017. Average price for detached houses in GTA was $1.2M in March, up 33.4 per cent from last year but about the same as in February.

– Altus Group Survey: 7% of households millennials are utilizing short-term rental platforms such as Airbnb to support mortgage payments.

 
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.

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One comment
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