June 16th, 2015 Mortgage Industry Update

The Bank of Canada announced on May 27th that it’s overnight lending rate will remain at 0.75%. The prime lending rate at most lending institutions thus remains at 2.85%. Additionally, most fixed rates have stabilized due to the bond market.

Additionally this week:
– CREA: Home sales were up 3.1 per cent in Canada as Western provinces continue to rebound, a sign that concerns of uncertainty may be easing.

– CAAMP survey says 280k first-time homebuyers expected to purchase this year, compared to 130k second-time buyers and 210k subsequent buyers.

– Predictions of interest rate cuts on the rise due to Canada’s economy contracting for first time in nearly four years in the first quarter.

– Canadian urban housing starts increased 10.8% in May to 185,235. Rural starts estimated at 16,470.

– CMHC forecasts slight moderation in housing starts in 2015 and 2016, reflecting a slowdown in housing market activity.

 
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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