CAAMP’s Spring Mortgage Report 2014

CAAMPSpring2014Every six months, CAAMP’s mortgage market survey gives us a pulse on mortgage activity. The theme of its latest report is understanding the “new normal” in the mortgage market.

Here’s one of the report’s key assertions:

The (mortgage rule) changes made in 2012 were inappropriate: there was an issue of inadequate housing supply in a few communities that was resulting in excessive price growth in those communities. But, the policy response to these localized supply issues was to depress housing demand, which applies (unnecessarily) to all areas of Canada…

CAAMP’s chief economist and report author Will Dunning suggests more focus should be placed on rectifying the “insufficient supply” in pricey housing markets, rather than impeding demand and economic growth through additional mortgage regulation.

Apart from commentary on mortgage policy, Dunning shares his usual array of intriguing findings. There’s new data on mortgage rates, refinancing, amortization length and more. Key points are highlighted below in green, with our comments in italics.