continues to show overall positive growth but further improvement seems a long
ways away. Third quarter growth of 0.1% will keep the region out of
another technical recession but it is nothing to cheer about.
Inflation remains negligible and unemployment levels remain high.
Interest rates will remain steady in the region for a number of years with the
possibility of slight decreases to battle the spectre of deflation.
Janet Yellen, the current favorite to become the next head of the US Federal Reserve, stated that the current quantitative easing program needs to continue until there is significant improvement to unemployment numbers. Although the US economy has improved a great deal, lingering unemployment concerns continue to cast a shadow on the hopes that the economic recovery has become sustainable without the assistance of stimulus programs. The main concern with continuing the bond-buying program is that, eventually, it will likely cause inflation to spike. However, inflation is currently quite low and the risk of deflation is still very much present.
In Canada, recent numbers showed increased export numbers which is a positive development as it shows a decreasing dependence on household spending to maintain growth.
The Canadian dollar remained relatively steady over the past week and should linger in the $0.93 to $0.96 level for the remainder of the year.
Bond yields have remained steady but some lenders have begun to reduce some fixed rates since it now looks like the declining yields of the past few months are here to stay. Variable rates are becoming more appealing as any Prime rate movement seems at least 18 months away. 5 year terms are now available at 3.34% on a rate special for regular properties and variable terms are still available at Prime less 0.5% for regular properties. Fixed term mortgage rates should remain steady in the short term but consumers are advised to obtain rate holds to protect against the possibility of increasing rates in December and January.
Please remember that 80% financing is available for qualified US residents at great rates!
I am always available to assist you and your clients.
Jason McLean BSc, AMP
The Mortgage Centre: Garibaldi Mortgage
fax: 604-905-3801cell: 604-935-9190