July 2nd, 2019 Mortgage Industry Update
The Bank of Canada announced on May 29th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019.
Additionally this week:
– Better Dwelling: Housing data between January 2000 and March 2019 reveals that Vancouver’s home prices grew 316%; more than major US cities – New York City, Los Angeles, San Francisco, Seattle. Toronto grew by 240%; also more than all the same listed US cities.
– BILD: 4,794 new home sales in May, up 94% annually (highest number for May since 2002), 27% above 10-year average. 4,574 single-family homes available on market, compared to 12,537 condos. 1,004 new single-family home sales, representing 211% year-over-year increase.
– Statistics Canada:Residential construction sector led gains for overall Canadian construction investment in April; 3.6% increase took investment to $10.6B for the month, while non-residential sector gained 0.3% to $4.7B. Total investment in Canadian construction up 2.6% to $14.8B.
– Office of the Superintendent of Financial Institutions: Canada’s HELOC loan balance reached a historic high in April, passing the $300B mark for the first time (now at $300.93B); growing by 0.44% from March and by 7.56% from April 2018.
– Statistics Canada: Annual pace of inflation picked up in May as consumer price index rose 2.4% compared with a year ago; largest increase since October 2018. Compared with 2.0% increase in April and was the fourth straight month of rising year-over-year increases.
– Teranet-National Bank Composite House Price Index: Canadian home prices went up by 0.5% on a month-over-month basis in May; first time in nine months. Increases were observed in 9 out of 11 metropolitan markets analyzed.
Stay tuned for the next update!
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