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Iii tt E w----------------------- - GAILBIRD 842-?000 GAIL BIRD 842-7000 . ..........e....o...qooeoqoto.t.... --------- mortgage rates for 1993 and I994 are only slightly high- er than the lows experienced last fall. (In September 1992. the Frve-year rate reached a 26 year low ot 8.50%). These low mortgage rates will of the increase expected in 1994, mortgage rates fm [Strong housing affordability Continued from page 8) of The combina- tion of lower house prices and the low- est interest rates in two decades has resulted in a very strong improve- ment in housing affordability. continue to support the recovery of housing demand. percentage has been rising steadi- ly. In 1990 only 7% of those renters could afford to buy. By the first half of 1993 it renters aged 20 to 44 who can afford to buy a home. In Toronto, the percentage has it It income required to buy an average starter home (priced at $160,000) is approximately $55,000. To buy a townhouse costing between $120,000 to $l40,000 requires an income of $40,000 to MLS sales reach- ing a seasonally- adjusted annual rate of over 50,000 units, which is a very strong perfor- mance compared to the 1992 total of 41,703. This strength is a short- term wave result- ing from the declines in mort- gage rates that occurred in March and July. As in the past, this wave will dissipate after a few months, dur- ing this fall. Sales for 1993 will total