August 1st, 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:
– June 2017 saw sales fall in 70 per cent of all local markets covered by the CREA’s measurements.

– CMHC: Toronto prices (which fell from $919,589 in April to $793,915 – June) should pick up again due to supply constraints, stronger economy.

– BILD: Over 90% June home sales were for condo apartments (high, low, mid rise), stacked townhomes. 5,495 total units sold; up 89% year/year.

– CMHC Data: Mortgage delinquency rates nationwide have reached their lowest levels in decades as of Q4 2016.

– New protections for condo owners and rules for managers and directors in Ontario are taking effect this fall.

– TREB: 8,223 condo apartments sold b/w March and June, down 8% from 2016. Avg price up 28.1% to $532,032 for the TREB market area as a whole.

 
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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