December 16th, 2017 Mortgage Industry Update
The Bank of Canada announced on December 6th that it’s overnight lending rate will remain at 1.00%. The prime rate remains the same. It is common prediction for rates to rise another 2 times by the end of 2018. Most fixed rates have now stabilized in the 3%+ range.
Additionally this week:
– RBC economics: The drivers of Canada’s economy are set to shift in 2018. After several years of housing activity acting as the main engine of growth, changes to regulations in the housing market and rising interest rates are setting up for a moderation in housing resales.
– Teranet-National Bank Composite House Price Index: National prices declined 0.5% in November from the month before as four of the 11 cities surveyed weakened. In Toronto, prices fell 1.4% on the month.
– CMHC: November surge in everything from semi-detached homes to condos has brought the number of housing starts over the past 12 months to the highest on record in data going back to 1959.
– Statistics Canada: The median net worth of Canadian families was $295,100 in 2016, a jump of nearly 15 per cent from four years ago and almost double the 1999 level.
– Toronto Council voted 40-3 in favour of requiring short-term rental operators to register with the city, while blocking secondary suites from being listed on sites like Airbnb.
– OSFI: As of the end of September 2017, the total of uninsured mortgages was $611 billion, representing a dramatic increase of 17.46% compared to the previous year.
Stay tuned for the next update!
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