The Mortgage Report: March 3 “Interest rate risk could rise if the economy outperforms expectations,” said RBC Economics on Tuesday, as the bank raised three of its special fixed rates: 3yr: 2.19% to 2.24% 4yr: 2.09% to 2.29% 5yr: 2.04% to 2.24% That leaves just CIBC with advertised 5-year fixed rates under 2.00%. But advertised and reality are two different...
The Mortgage Report: Jan. 4, 2021 2020 was a year that took pleasure in humiliating forecasters. From the remarkable bounce in housing, to the resilience of mortgage volumes, to the devastation in big-city rental markets, to the homeowner exodus from urban cores to the lows of contract mortgage rates, to the persistence of high qualifying rates — 2020 made the...
—The Mortgage Report: Oct. 7— Toronto condo listings have exploded 215% to a record high, reports Bloomberg. And they’re projected to be even higher in October, according to HouseSigma. Driving that surprising number: skittish investors (many with negative cash flow given surging rental listings and a 14% y/y drop in rents) “elevator phobia” people coming off mortgage deferrals relatively higher...
—The Mortgage Report: Sept. 2— Here’s something that baffles even experienced financial professionals. The U.S. stock market is exploding to all-time highs while bond yields trudge near record lows. It’s a question investors are asking all the time: are stocks signalling a growth recovery that will lift yields higher? The mortgage relevance is clear: if U.S. yields pop, so do...
Well, you don’t see this every day: The head of Canada’s housing agency seemingly guilting lenders into sending him business and tightening mortgage lending. In a letter to the industry originally leaked to Bloomberg (see below), CMHC CEO Evan Siddall chided and accused mortgage lenders of: short-sightedly sending too much business to CMHC’s competitors creating a “very significant drag” on...
—The Mortgage Report: Aug. 4— Historic 5-year Yield: On Tuesday the U.S. 5-year Treasury traded just 19 basis points above zero—where it’s never been before. If it drops a smidgen lower, that could be enough to drag Canada’s 5-year yield (and hence, 5-year fixed mortgage rates) to record lows as well. Stay tuned. Setting the Pace: Tangerine now has the...
The Mortgage Report – May 19 5% Down Payments at Risk? Canada’s housing agency says it must “avoid exposing young people” and “taxpayers” to “amplified losses that result from falling house prices.” CMHC CEO Evan Siddall said today, “Unless we act, a first-time homebuyer purchasing a $300,000 home with a 5% down payment stands to lose over $45,000 on their...
Rarely have the heads of Canada’s housing agency and largest mortgage broker association been at such odds publicly. It feels like CMHC boss Evan Siddall and Mortgage Professionals Canada (MPC) chief Paul Taylor want to get in the ring and beat the stuffing out of each other. The former published his latest in a series of missives denouncing opponents of...
If you like low mortgage rates, there was good news from Canada’s housing agency Wednesday. CMHC CEO Evan Siddall said a proposal to have lenders potentially share losses when insured borrowers default is now on the back burner. This Department of Finance scheme was sold as a way to encourage more prudence in lender underwriting. But it also threatened to...
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