Looks like RBC just upped two of it’s mortgage rates by one fifth of a point.
What will we do without our record low mortgage rates?
It’s probably just a minor fluctuation, but other banks are expected to follow as bond yields have edged up in the last month.
So if you want to do a rate lock in now might be the time.
Helmut Pastrick of Central One Credit Union explains:
“Sentiment has improved with respect to Europe and the economic outlook,” Pastrick said. “The economic news was quite negative for a period of weeks and now it is somewhat less negative.”
RBC’s posted rate for a three-year, fixed-rate mortgage will go up 0.2 percentage points to 4.05 per cent. Meanwhile, an RBC special-offer rate for five-year closed mortgages rises to 3.69 per cent.
The rise in the cost of funds for banks will mean other lenders will probably also raise their rates, or absorb some of the cost increase to hold onto or gain market share,” Pastrick said.
Read the full article over at the Vancouver Sun.
Yeah, sales are down across Canada and prices as well.
Average prices across the nation dropped 2% in July on a Year over Year basis.
But it’s really not as bad as it sounds.
That national average is mostly being dragged down by Vancouver where average prices fell 12.2% in July according to the CREA.
So mostly it’s the Vancouver real estate market where prices shot through the roof and are now falling back to earth that is dragging down the national average.
No Canadian real estate market crash yet.
If you haven’t seen it yet, you should really check out this post by Ben Rabidoux over at The Economic Analyst.
This report was put together mid-June and things haven’t gotten any better since then.
It’s a lot of stuff you already know, but some data you may not have seen and it’s jam packed with beautiful charts.
Check out the how the BC economy has grown in construction, but flatlined outside:
And there’s this little data point as well:
Before diving into the data, consider this fun anecdote: There are currently over 5,000 homes in Vancouver metro area for sale for over $1 million according to MLS.ca. In comparison, the NAR reports that in April, just over 7,000 homes sold in the entire US were sold for over $1 million. And this despite the fact that the US population is 135X greater than the metro Vancouver market, the average personal disposable income in the US is 20% higher than the Vancouver average ($37,100 vs. $30,800) while US per capita GDP is higher than the average for all of BC.
Do yourself a favour and read the full post over at The Economic Analyst if you haven’t already.
It’s that time of the week again! Friday is when we do our regular end of the week news roundup and open topic discussion thread for the weekend. Here are a few links to kick off the chat:
–Vancouver market in full retreat
–Championship of lost sales
–REBGV news release for July 2012
–GVREB news release for July 2012
–How much $ has left the economy?
–New site forces realtors to compete
–‘Think Housing’ contest winners
–BCSC alleges million $ fraud
–No new steps to cool market
–New framework for credit unions
–Global slowdown dashes hopes
–Unsold Toronto condos growing
And here’s a couple of charts, the first one is from VMD and shows what the average Vancouver house price has done in the last two years:
This second chart is from Ben Rabidoux and was linked by Jesse – you can draw on your own red line for July:
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
It’s not just Vancouver house sales that are heading down.
Business confidence in Canada dipped for a fourth month in a row and is now at a 3 year low.
This according to a survey from the Canadian Federation of Independent Business.
The last time it was lower was in July of 2009, when it stood at 58.6.
CFIB chief economist Ted Mallett says the index’s current position in relation to gross domestic product puts it very close to the zero-growth mark, suggesting Canada’s economy is nearing a standstill.
On Tuesday, Statistics Canada reported the economy had grown a disappointing 0.1 per cent in May, leaving the pace of the recovery at slightly below two per cent on an annualized basis.
The CFIB says confidence declined in July even in resource-rich provinces like Alberta, which saw a drop of three points to 70.3.
So taking out a home equity loan to fund your underperforming small business? Maybe not such a good idea unless the revenue is there.