Mortgage Rates Drop Again - More Inventory For Home Buyers
Today, benchmark five-year mortgage rates declined to 5.79 percent at the Canadian Imperial Bank of Commerce, Bank of Nova Scotia, Laurentian Bank and Desjardins Group.
They rival recent rate reductions by the Bank of Montreal, Toronto Dominion Bank and Royal Bank of Canada.
In housing market news, sales activity in some of Canada’s hottest markets dropped sharply in June. According to real estate boards in Toronto, Vancouver and Calgary, June home sales in Toronto were down by 23 percent over the same month last year, while sales in Vancouver were down 30.2 percent; Calgary showed the largest drop at 42 percent, although sales of luxury homes rose slightly.
In a story published on CBC.ca, one spokesperson points out that despite the drop, June home sales in Vancouver are still up by 22.6 percent over 2008 recession levels.
This suggests that home sales activity isn’t taking a plunge; on the contrary, it just soared back from being strapped to a bungee cord and pushed off a cliff in 2008. Now, more inventory means more housing choices and decision-making time for buyers.
Next question: will all of this deter the Bank of Canada from raising its key interest rate on July 20? Some economists think it might.