Agent Blogs

Canada

• The Bank of Canada’s Business Outlook Survey revealed that businesses are mildly optimistic about the future. Manufacturing sales also came in better than expected earlier this morning.

• The third Canadian data release for the week was the one that had everyone talking. Existing homes sales posted a 17.4% year-over-year drop in December – the largest drop registered since late-2010. Home prices eked out a gain, but momentum has undoubtedly decelerated over the course of the year.

• Tighter government-backed insured mortgage rules and stricter lending practices have contributed to the recent housing weakness. Looking ahead, we do not expect the Canadian housing market to undergo a U.S.-style crash. Instead, prices and sales should stabilize in the months ahead, but a gradual, medium-term adjustment remains in the cards.

United States

• Very strong housing starts provided the silver lining to a week with plenty of positive data releases.

• We expect residential construction to contribute roughly 0.5 percentage points to overall real GDP growth and close to 500K net new jobs this year.

• Leaving aside the policy uncertainty that still hangs over the U.S. economy on the fiscal front, the firming of the housing market, a very accommodative monetary policy stance and subdued inflationary pressures are good precursors for an acceleration in U.S. economic activity in the coming quarters.

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If you require guidance on current market trends, please call us, we are always available to help.

Today 5 year mortgage money is in the 2.98% range and 10 year terms from 3.79%. Variable rates are as low as 2.65%.

Thank you,

-Cory Kline ("Call for a FREE Second Opinion on your Mortgage" 705-794-1283)

Mortgage Planning since 1998.