March 21st, 2017 Mortgage Industry Update
The Bank of Canada announced on March 1st that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. CMHC has announced that its rate premiums will rise on March 17th. Many fixed rates are predicted to rise slightly.
Additionally this week:
– Statistics Canada: Mortgage borrowing up $1.2B to $18.9B in Q4 2016 while non-mortgage borrowing up $8.5B quarter-above-quarter to $9.5B.
– Year-over-year basis, home prices across Canada up by 13.4% in February, the largest annual increase since November 2006.
– Teranet-National Bank Composite HPI jumped almost 1% from January, largest rise in 18 years. Toronto saw increase of almost double; 1.91%. Average value of homes in Toronto rose by 1.9 per cent, making February the 13th straight month of home price increases in the city.
– CREA: Home sales though its MLS system hit their highest level since last April, gaining 5.2 per cent in February compared to January. National average price for a home sold in February was $519,521, up 3.5% from a year ago, boosted by Greater Vancouver and Greater TO.
– RBC: Predicting a 2.1% growth rate for the Albertan economy this year, the second fastest pace in Canada, as well as 3.3% in 2018.
– OREA: Augmenting supply of homes in Toronto by improving rate of new construction is key to addressing the city’s affordability situation.
Stay tuned for the next update!
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