October 20th Mortgage Industry Update
October 20th, 2020 Mortgage Industry Update
The Bank of Canada announced on September 9th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada has openly stated that it will more than likely keep rates at this “effective lower bound” for the immediate future until the effects of the pandemic are more clear.
Additionally this week:
– Rentals.ca report: The average listing price for a one-bedroom in the old city of Toronto for September was $1,967. That figure is down 2.2% monthly and 14.9% year-over-year. The average for two-bedrooms landed at $2,569, down 3.3% monthly and 12% annually.
– Royal LePage House Price Survey: Aggregate price of a home in Canada increased 8.6% year-over-year to $692,964 in Q3. Median price of standard two-storey home rose 10.0% to $819,906, price of bungalow increased 7.0% to $570,701, price of condo increased 5.3% to $510,365.
– Conference Board of Canada: Increase of 378,000 jobs in September. Full-time jobs had a massive gain of 334,000. By province, the largest increase in jobs was seen in Ontario (167,600), followed by Quebec (76,700) and British Columbia (+54,800). The unemployment rate fell to 9%.
– CMHC: Alberta has the highest rate of mortgage deferrals in Canada. Nearly 19% of Albertans continue to defer their insured mortgage payments. Rates are more than double Ontario’s rates and nearly double B.C.’s. Next highest deferral rates were in Saskatchewan and Newfoundland.
– TRREB: The average price for a detached house in the city of Toronto in September was $1,487,122. That’s down 3.5 per cent from July’s average at $1,541,003. The average price for a semi-detached in September was $1,166,226, down nine per cent since June’s average, $1,287,832.
– CMHC: Seasonally adjusted annual rate of housing starts was 208,980 units in September, down from 261,547 units in August but in line with average readings in 2019. Rate plunged 20% from August. Economists had expected an annual rate of 240,000 starts in September.
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.
