September 10th, 2019 Mortgage Industry Update
The Bank of Canada announced on September 4th 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, with the small possibility of a rate decrease.
Additionally this week:
– TREB: Home sales in the GTA in August were up 13.4% compared with 2018, and up 0.8% from July. There were 7,711 home sales through its MLS system in August, up from the 6,797 sales reported in August 2018. The average selling price was $792,611 in August, up 3.6% from 2018.
– Bloomberg Nanos Canadian Confidence Index: The share of respondents who believe Canada’s economy will strengthen over the next six months dropped to just under 13% at the end of August, from about 18% a month earlier. Share who see the economy weakening increased 5% to 29%.
– Bank of Canada: National residential mortgage debt load reached $1.58 trillion in July, growing by 3.8% annually and 0.5% from the month prior. Slowest 12-month increase for the month since 1995. Rate of annual growth was 2.6% lower than the acceleration seen in July 2018.
– Pollara Strategic Insights Survey: 26% of first-time home buyers admit that they will find raising funds for a 5% minimum down payment a “major” challenge, while 39% stated that it will be a “minor” struggle. Just 14% of would-be buyers are already prepared to make down payments.
– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– Conference Board of Canada’s chief economist: GTA becoming victim to disproportionate migration patterns, will erode quality of life and doubtless make housing more expensive. The GTA comprises 45% of Ontario’s population, yet received 77% of the province’s immigrants in 2018.
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.Share this post on: Connect with us on: