Winnipeg Real Estate News Updates - June 2023
June 22, 2023 | Posted by: Ron Chan
It’s the first day of summer (at press) which is an exciting time for nearly everyone in Canada’s central hotspot. This excitement is somewhat tempered by the nerves of prospective homeowners who have plans to buy a home during the most popular season for doing so. To mitigate the nerves they (you?) are researching local Winnipeg real estate news to find out if there is anything to know before getting pre-approved on a mortgage and hitting the house-hunting market running. There are indeed some interesting updates to take note of. Let’s review!
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of June 2023
Bank of Canada Interest Rate Goes Up Again
Back in March, the Bank of Canada announced that they were holding steady on the prime rate for the first time in nearly a year. They also indicated that the hike could mark the end of increases for quite some time. It didn’t take long for them to “renege” on that position as on Wednesday (June 7) they announced a 25 basis point hike to bring the prime rate up to 4.75%. We supposed flip-flops do mark the beginning of summer, after all.
During the June 7th announcement the Bank of Canada also stated that they will continue quantitative tightening. These two announcements surmise a rise in variable and fixed mortgage rates. That being said, mortgage rates have been at their highest level in more than a decade, so there really isn’t much room for them to increase further.
How Savvy Buyers Are Responding
Ultimately, people aren’t going to stop buying homes. In fact, many are resigning to the possibility that this is simply what the market will be like for quite some time. Delaying a home purchase only puts households further away from their goal of homeownership and independence.
Instead of delaying purchase, savvy buyers are opting for shorter-term mortgages on hopes interest rates will drop. Fixed 1- and 3-year mortgages are the most popular at the moment in Manitoba. The Financial Post reports that fixed-rate mortgages with a term of 5-years or more currently account for just 13 percent of new and renewed mortgages, while those between one and three years made up 36 percent. This plan provides protection against the unknown (variable rates) but also leaves room to enjoy lower rates upon renewal. For this reason, Winnipeg buyers are advised to work with mortgage brokers who specialize in mortgage renewals, and to keep their broker on speed dial as developments progress in the market.
When it comes to Winnipeg mortgage renewals, there is no better resource than Ron Chan. Ron has established relationships with multiple lenders who are ready and willing to compete for your business and will give you better mortgage renewal rates that you may find elsewhere. This is the only real estate news that matters to buyers today. Let’s talk about your options via a friendly non-committal conversation.
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