As we close out the end of the first month in 2018, we realize how much has changed in only 12 months. At Robert Floris’ Mortgage Architects Office in Hamilton, Ontario, we will try to share how we feel the market has changed and where we believe it is leading us.
|Mortgage Rates – 5 years fixed||Range 2.49% – 2.89%||Range 3.39% – 3.69%
Rates climbing slowly
|Mortgage Rules||Normal – stress rates in for high ratio||Higher stress rates for both high ratio and convertible|
|Listings||Not enough inventory to meet demand||As of January 1, 2018, there were 50% more listings|
|Real Estate Prices||Price escalating due to increased demand and lack of supply||Less pre-qualified people, more supply has made the market very slow with the exception of the starter homes between $300,000 to $400,000|
It is our opinion that with the new mortgage rules, less clients are being qualified with the A rates. The new mortgage rules are also affecting the secondary B market. The secondary market are using 6% for their stress test, leading to an increase in high rate second mortgages.
It is our opinion that as these marginal clients get pushed out because of affordability, more homes will go on the market and thus we do not see much or any price increases for this year.
Click here to see what others are saying about Robert and we invite you to leave your own review!