{"id":20114,"date":"2022-06-20T10:10:00","date_gmt":"2022-06-20T17:10:00","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=20114"},"modified":"2022-06-14T14:15:09","modified_gmt":"2022-06-14T21:15:09","slug":"the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/","title":{"rendered":"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009"},"content":{"rendered":"<p style=\"text-align: justify;\">Rising mortgage rates are already having a cooling effect on the province\u2019s real estate market, according to figures released Monday by the BC Real Estate Association.<\/p>\n<p style=\"text-align: justify;\">Total sales dropped by 35% in May versus the same time last year, with 8,214 properties changing hands last month, the association said.<\/p>\n<p style=\"text-align: justify;\">The value of sales through the first five months of the year dropped by 14.5% to $46.7 billion, versus the same time period in 2021. Over that five-month stretch, home sales dropped by 26.3% to 43,921 units.<\/p>\n<p style=\"text-align: justify;\">And the trend is expected to continue, said BC Real Estate Association chief economist Brendon Ogmundson, with sales declining over the next six months as markets adjust to a \u201cdramatically different\u201d interest-rate environment.<\/p>\n<p style=\"text-align: justify;\">At the same time, the inventory of listings will accumulate, though it still may be eight to 12 months before BC listings are at a \u201chealthy\u201d level, he said.<\/p>\n<p style=\"text-align: justify;\">Ogmundson noted the average five-year fixed mortgage rate reached 4.49% in June, the highest since 2009.<\/p>\n<p style=\"text-align: justify;\">While the association expected the five-year fixed rate to rise to that level, it anticipated it would happen over the course of 12 to 18 months, he said. \u201cInstead, it happened in six months. That means sales are falling faster than expected in a number of markets, particularly those markets that seem to be more interest-rate sensitive.\u201d<\/p>\n<p style=\"text-align: justify;\">The Bank of Canada started raising its benchmark lending rate \u2014 which directly influences the rate consumers get on lines of credit and mortgages \u2014 in March. Since then, it has increased from 0.25% to 1.5%.<\/p>\n<p>The effect on home sales has been immediate.<\/p>\n<p style=\"text-align: justify;\">In Victoria, there were 761 home sales in May, a 27.5% drop from May last year, despite the fact there was a 30% increase in available housing inventory, with 1,776 listings in the region at the end of the month.<\/p>\n<p>While Ogmundson attributed slowing sales mostly to rising mortgage rates, he said a general fatigue in the market has also set in.<\/p>\n<p style=\"text-align: justify;\">\u201cA lot of the pandemic-driven out-migration has likely slowed, as it has become much more difficult to find and afford homes in places like the Island and the Okanagan, than in 2020,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">Selling prices of homes in markets like Victoria remain high, and Ogmundson said that could continue for a while.<\/p>\n<p style=\"text-align: justify;\">While some areas of the Lower Mainland have seen 10% declines in average prices, that\u2019s more about the changing composition of sales than an underlying weakness in the market, he said.<\/p>\n<p style=\"text-align: justify;\">\u201cThe Island markets were the most supply-constrained in the province and so it will take some time for prices to adjust. While price growth is decelerating on the Island, month-over-month prices were still rising at a 5% to 7% rate in May.\u201d<\/p>\n<p style=\"text-align: justify;\">The average sale price in the province last month was $1 million, a 9.3% increase from the $915,392 recorded in May 2021.<\/p>\n<p style=\"text-align: justify;\">In Greater Victoria, the benchmark price of a single-family home was $1.29 million, up from $1.02 million at the same time last year, and $1.27 million in April this year.<\/p>\n<p><a href=\"https:\/\/biv.com\/article\/2022\/06\/rising-mortgage-rates-cooling-homes-sales-not-prices\" target=\"_blank\" rel=\"noopener\">Rising Mortgage Rates Cooling Home Sales, But Not Prices<\/a> by Andrew Duffy | Times Colonist | BIV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rising mortgage rates are already having a cooling effect on the province\u2019s real estate market, according to figures released Monday by the BC Real Estate Association. Total sales dropped by &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-20114","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009 &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009 &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Rising mortgage rates are already having a cooling effect on the province\u2019s real estate market, according to figures released Monday by the BC Real Estate Association. Total sales dropped by &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009\",\"datePublished\":\"2022-06-20T17:10:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/\"},\"wordCount\":503,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Market Updates\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/\",\"name\":\"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009 &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2022-06-20T17:10:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2022\\\/06\\\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009 &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/","twitter_card":"summary_large_image","twitter_title":"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009 &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"Rising mortgage rates are already having a cooling effect on the province\u2019s real estate market, according to figures released Monday by the BC Real Estate Association. Total sales dropped by &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009","datePublished":"2022-06-20T17:10:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/"},"wordCount":503,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Market Updates"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/","url":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/","name":"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009 &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2022-06-20T17:10:00+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2022\/06\/the-average-5-year-fixed-mortgage-rate-reached-4-49-in-june-the-highest-since-2009\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"The Average 5-Year Fixed Mortgage Rate Reached 4.49% in June, The Highest Since 2009"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/20114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=20114"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/20114\/revisions"}],"predecessor-version":[{"id":20115,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/20114\/revisions\/20115"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=20114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=20114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=20114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}