Below is the type of data that we watch for you on a daily basis. … short version – rates are holding at 114 year lows.
As expected the Bank of Canada has held the line on its benchmark interest rate for another setting.
Concerns about inflation, which accelerated again in June, appear to be outstripped by Canada’s stagnant job market and the apparent desire to bolster the country’s export sector by lowering the value of the Canadian dollar.
Unrelenting low rates are, of course, doing nothing to moderate demand for housing. The latest CREA figures show a 0.8% increase in sales from May to June with an 11.2% jump from a year ago. The MLS read on prices shows a 5.4% year-over-year increase. The Teranet index shows a 4.5% jump.
The Canadian housing market shows no signs of slowing down during the typically slowing summer months. Economists say they continue to be surprised by the strength in the housing market and continued appetite that Canadians have towards home ownership.
The U.S economy is growing much faster than expected and unemployment is down to 6.1% which is at its lowest level since the summer of 2008. Housing starts across the US have also exceeded the expectations of many economists. This encouraging news is causing speculation that the US Federal Reserve will be forced to raise interest rates faster than anticipated to ensure inflation does not become a concern.
According to Bloomberg News, Charles Plosser of the Federal Reserve states, “The data keeps telling us we ought to be raising rates, if we wait too long we could find ourselves raising rates faster and higher than we want to.” Historically, our interest rates usually follow the lead of the US.
With the hot real estate market this summer, it makes sense to get a pre-approved mortgage with a locked in interest rate while we are still at historical lows. Access to major banks, trust companies and credit unions combined with my expertise provides you the opportunity to get the right mortgage with the best possible rate and terms.
Contact me today.
Multi Residential Lender within a bank that will work with 5-PLEX and UP!! These are multi residential rates (APPROX 3.99% on 5 year).
This is nerdy news but it is a big deal for real estate investors who have a tough time getting funding for small 5 and 6 plex deals as they are so small lenders will not look at them commercially and anything more than 4 units can not be done as residential.
For more data call me;
Mark Herman, AMP, B. Comm., CAM, MBA-Finance
WINNER: #1 Franchise for Funded $ Mortgage Volume at Mortgage Alliance Canada, 2013
Vancouver tops the list of most expensive Canadian cities to live in, surpassing Toronto for the second year in a row, according to an annual cost of living survey.
But life is still expensive in Toronto, as well as Montreal and Calgary, which round out the top four costly cities in the country, according to Mercer’s 2014 Cost of Living Survey.
Overall, however, Canadian cities have dropped down the list significantly in this year’s ranking compared with other places worldwide, because of the weakened Canadian dollar and slower pace of price increases compared with New York, the survey’s base city.
Vancouver fell thirty-two places since last year, for a new ranking at 96, while Toronto stood at 101, down thirty-three spots, Montreal fell twenty-eight spots to 123 and Calgary dropped to rank 125.
– See more at: http://www.nanaimodailynews.com/business/life-is-most-expensive-in-vancouver-but-cdian-cities-drop-in-worldwide-ranking-1.1200860#sthash.VLKjU4BU.dpuf