August 15th, 2017 Mortgage Industry Update

The Bank of Canada announced on July 12th that it’s overnight lending rate will increase from 0.50% to 0.75%. The prime rate at almost all institutions has increased from 2.70% to 2.95%, the first increase in 7 years. Fixed rates have slightly risen over the last 3 weeks and seem to have stabilized now.

Additionally this week:
– MCAN: Lower home sales are forecast in Ontario and British Columbia as regulatory changes continue to impact the markets.

– Cushman & Wakefield: By 2019, Vancouver to have second-lowest office vacancy rate in Western hemisphere (6.3%), behind only Toronto (3.9%).

– Greater Montreal Real Estate Board: 3,075 homes sold in July, increase of 16% compared to 2016 and the most for the month in eight years.

– CMHC: 30% increase in foreign capital holders flocking into Montreal residential real estate market in first half of 2017 over 2016. The number of new mortgages continued higher in 2016. There were just over 1 million new loans in 2016, a 1.4% increase from 2015. The 6 month trend for housing starts was higher in July, the 7th consecutive month of gains and rising to 217,550 from 215,175 in June.

– Genworth: Total value of new insurance written in Q2 2017 was down $6.1 billion from $31.7 billion a year ago – an 81% year-over-year drop. Loss ratio for Q2 2017 was 3% – down from 21%. Delinquencies outstanding also fell by 273 to 1,809. Portfolio remains strong.

– July served as the third consecutive monthly decline in sales prices across Toronto, with the average price down nearly $175,000 since April.

 
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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