This week, I have invited Jason McLean, Mortgage Broker with Garibaldi Mortgage here in Whistler, to publish his weekly "McLean's Market Musings" on the blog. Jason offers a wealth of information and knowledge to those looking for financing options on properties here in the Sea to Sky corridor and a keen sense of the global economy. If you have questions about mortgages and financing on phase I, II or standard residential property, contact Jason - his contact information is below.
McLean's Market Musings
France has joined the parade of European economies that continue to slide downwards. It appears that as some of Europe’s larger economies continue to worsen, the prospects for positive growth seem farther away than originally thought. However, the decreasing value of the Euro should start to provide a currency advantage to companies that export goods and services to other parts of the world.
The US economy continues to gain strength. Despite lower than expected job numbers, positive trends in housing data and auto sales show that US consumers are no longer entrenched in an economic survivalist mentality. Increased consumer confidence will be a huge part of the US economic revival as GDP growth continues to improve over the next few years. With the US being the largest trading partner for Canada, our economy will see positive results from the US returning to a position of economic strength.
Canadian economic news was not very positive this week but the economy has maintained slightly positive growth. Our economy will be pulled forward by the growing US economy and when global growth prospects improve, commodity prices should follow. For a commodity based economy, global economic growth potential will always be in the forefront of market analysis when considering the future prospects for Canada.
Bond yields remain steady and have seen little movement over the past month. With all other factors being equal, fixed term interest rates should remain unchanged for the foreseeable future. However, the recent federal budget changed a policy that will likely cause rates to creep up by about 0.25% over the next 8 months. Although the spring real estate market has been lacklustre for the majority of Canada, most lenders traditionally stop their spring mortgage campaigns around May. Rate holds are recommended for all clients considering purchases or renewals in the next 5 months.
Please remember that 80% financing is available for qualified US residents at great rates!
Jason McLean BSc, AMP
The Mortgage Centre: Garibaldi Mortgage