May 10th, 2016 Mortgage Industry Update

The Bank of Canada announced on April 13th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have also slightly declined.

Additionally this week:
– CMHC: The trend measure for housing starts in Canada was 195,064 units in April, down slightly from March’s mark of 196,103.

– Statistics Canada said Friday that the national unemployment rate for April remained unchanged at 7.1 per cent.

– CREB: Benchmark value of average home in Calgary fell 3.4% from 2015, down to $441,000. 7th straight month of decline for this price.

– TREB: Toronto home sales up 7.4% year-over-year in April, which set a monthly sales record. Average price up from $690,058 to $766,472. Toronto saw a sharp 16.2 per cent growth in average home prices in just 12 months. Home prices in the GTA saw an increase, settling in at an average of $739,082 – up from $636,094 a year ago. Commercial leasing through MLS down in April 2016 to 306,003 square feet, from 811,123 square feet in 2015.

– CMHC Report: While we do not detect overbuilding in Toronto, we have some concerns about the high inventory of completed and unsold condos.

– A few rate changes:
Home Trust decreases their 5 year fixed and variable promotional mortgage rates to 2.54% and 2.35% respectively.

 
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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