The central bank in May had trimmed the rate to 4.94 per cent from 5.04 per cent.
Bank of Canada cuts benchmark mortgage rate to lowest level in three years
The Big Six banks had already cut their advertised five-year fixed mortgage rates to the same level, though some special offers reduce rates to as little as 2.19 per cent.
The report reiterated the agency’s forecast that house prices could decline anywhere from 9-18%, adding that oil-producing regions could see declines up to 25%.
Latest in Mortgage News: 2.5 Years for Home Prices to Make New Highs, Says CMHC
“Following large declines in 2020, housing starts, sales and prices are expected to start to recover by mid-2021 as pandemic containment measures are lifted and economic conditions improve,” said the housing agency’s chief economist, Bob Dugan.
These are good news for buyers.
Home prices drop again in Edmonton, benchmark lowest in six years: report
Keep this in mind!
Canadian Mortgage Rates Are Their Lowest In 2 Years. Here’s Where They’re Headed Next
Rates for the most popular type of mortgage in Canada have sunken to the lowest level in about two years, and they could be heading further south before 2019’s end, suggests RateHub.ca co-founder James Laird.
Find out more stats in the 2017 RE/MAX Housing Market Outlook report.
