How to prepare for the Markets in 2017: Q4 Economic Highlights with Michael Campbell

THINK OUTSIDE THE BOX:  “Bank of Canada rate cut still on the table for 2017 but that doesn’t mean mortgage rates will drop…”

There is no such pressure in Canada to raise rates. While 3rd quarter economic growth was good, the recovery in energy in the aftermath of production cuts due to the Fort McMurray fires played a huge part. After consistently revising their economic growth forecasts downward for the past four years, most financial institutions are predicting in the neighborhood of 2 ½% growth in 2017.

Bank of Canada Chair, Stephen Poloz has been dropping broad hints that there is no rate hike until 2018 at the earliest. In fact, he hinted last week that a rate cut was still on the table. But as we’ve seen in the last month that doesn’t mean that mortgage rates remain unchanged. Mortgage rates are being influenced by the increase in bond yields and the reduction in competition from non-bank lenders in the aftermath of the new mortgage rules.  Click here to read on…

Verico      December 19, 2016

 

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