and, in british columbia, these rules were further augmented. and third, mortgage interest rates continued to rise. in mid - 2017, the average five - year fixed mortgage rate was 2. 7 per cent. by the end of last year this rate had moved to around 3. 7 per cent. these factors caused all facets of housing to moderate. as a result, the housing market remains in a state of adjustment and flux, with wide regional differences. it is important to keep in mind that we ’ ve seen many housing markets moderate in countries such as australia and the united kingdom as the level of investor activity declined. the bulk of the slowdown has come from lower resale activity in the greater vancouver and greater toronto areas. in calgary, the volume of home sales is off by 17 per cent from a year ago, likely reflecting the decline in the oil sector. in contrast, over the same period we ’ ve seen a pickup of sales in cities like winnipeg, ottawa and montreal. overall, house prices rose by 4 per cent in 2018, consistent with the pace of national labour income growth. in many major markets we are also seeing shifts in construction from single - family detached homes to condos and other multi - family units, reflecting demand shifts as well as geographic constraints. for example, in the greater toronto area, by the end of 2018, starts of single - family detached houses had fallen by more than half to their lowest level since 1995, while the construction of multiples had increased by about 25 per cent in 2018. we are seeing the same pattern in calgary, montreal and here in hamilton. so, in general, complex adjustments, which do take time, are underway in housing markets, with significant variability across regions. at the bank, we are tracking these changes, given the importance of the housing market to the economy. consumption now let ’ s look at consumption. about 35 per cent of our household spending is relatively stable. that ’ s because the largest portion — roughly 20 per cent — is rent or an equivalent cost if you own your house. both tend to tick up a little every year. spending on other necessities, such as on your water bill or toothpaste, also contributes to the stability of consumption. you tend to pay your bill and brush your teeth regardless of your debt levels and the state of the economy. but some spending is more optional, such as on new cars, travel abroad, recreation and restaurant meals. it is in these categories where

2017 no 16. see report on mortgage arrears 2016 central bank of ireland central bank of ireland - restricted unregulated loan owners account for c. 3 % of the outstanding value of irish mortgage loans. this comprises €2 billion of pdh loans ( 2 % of the pdh market ) and €1. 7 billion of btl loans ( 8 % of the btl market ). figures derived from analysis of legal proceeding issued for loans in arrears as at 31 december 2017 by statistics division of the central bank. see http : / / ec. europa. eu / finance / docs / policy / 180314 - proposal - directive - non - performing - loans _ en. pdf see donnery 2018 “ when is the right time? macroprudential policy and the cycle? ” see t03. 07. 2 asset quality : non - performing loans and advances by country see acrp / banque de france - housing finance in france in 2016 - no. 82 – july 2017. see footnote 24. see table 3. b. 1 retail interest rates. floating rates include standard of loan to value variable rates, tracker rates and fixed rates up to 1 year. this totals to 81 % of outstanding loans. fixed rate loans for a period of 1 to 3 years is 10. 3 % of outstanding balances and fixed rate loans over 3 years is 8. 7 %. see ccpc website on mortgage information see box a : competition in the irish mortgage market see box c “ leading indicators of new housing output ” in quarterly bulletin 2018 q2. see mortgage switching research central bank of ireland april 2017. see ccpc, ‘ mortgage holding & mortgage switching market research findings ’, b & a january 2016. see ccpc website on mortgage information ( accessed on 24 / 5 / 2018 ). see enhanced mortgage measures : transparency and switching consultation paper cp112 in july 2016 a further addendum to the consumer protection was published following a public consultation process on increased protections for variable rate mortgage holders ( cp98 ), and to give effect to consequential amendments to the consumer protection code arising from the transposition of the eu mortgage credit directive. banking union - in response to the financial crisis, the european commission introduced a number of initiatives to create a safer financial sector. the proposals included, stronger prudential requirements for banks, improved protection for depositors and rules for managing failing banks. “ the first two pillars of the banking union –