Canada Mortgage and Housing Corp. reported lower second-quarter profits as it predicted a cooling off in housing starts in the coming months.
The Crown corporation said net income for the three months ended June 30 was $335 million, down from $383 million in the same period a year earlier.
CMHC said the drop was due to impairment losses on equity investments as well as an increase in net claims.
Revenues were $3.2 billion, down from $3.3 billion. CMHC attributes the decrease to lower interest income from mortgage backed securities.
The agency is calling for balance in most housing markets in Canada as total residential sales through the Multiple Listings Service are expected to remain "relatively stable" for the rest of 2012 and in 2013.
CMHC was created by Ottawa in 1946 to address the country's post-war housing shortage. It now provides mortgage insurance to protect lenders from defaults by homebuyers. It also monitors residential construction activity and housing sales.
