The Mortgage Girl

Forecasting Interest Rates

Mortgage Girl — Thu, 24 Jun 2010 22:50:45 +0000

Economists use a variety of techniques to forecast interest rates. The most basic is to use economics and history as a guide and to make a judgement about what an appropriate level of interest rates and their future course given the state of the economy and important economic variables. Since most economists disagree on how the economy works or what economic history means, this is more difficult than it seems.
See Schools of Economic Thought.

Alberta’s economy to lead Canada in GDP growth

Mortgage Girl — Fri, 18 Jun 2010 01:26:46 +0000

A recently released report by Scotiabank says that Alberta will experience a sharp economic rebound during 2010 and will lead all of the Canadian provinces in terms of GDP growth at 4.1%.

In general, all provinces have rebounded strongly, and the report forecasts Canadian output growth to average 3.6% this year, the strongest advance in a decade. For 2011, Scotiabank is forecasting that Alberta’s economic growth will be 3.4 per cent while Canada as a whole will average 2.7 per cent.

Canada’s housing market slumps on May

Mortgage Girl — Fri, 18 Jun 2010 01:10:17 +0000

Buyers backed away from Canada’s housing market in May, driving sales lower in what is traditionally the busiest month of the year for the country’s real estate agents.

The housing market has been key to Canada’s economic recovery, as low interest rates and pent-up demand drove buyers into the market after months of stagnation in 2008. But with interest rates likely heading higher in the second half of the year, many buyers who would have preferred to buy in the fall or early winter chose to buy sooner.

Tougher mortgage rules imposed by the federal government in mid-April also prompted buyers to act sooner, the Canadian Real Estate Association said. Meanwhile, tens of thousands of homeowners have seen the rampant demand and listed their houses for sale to take advantage of high prices.

Sales fell to 8.5 per cent to 40,393 units in May compared with April. Sales remain elevated by historical markers, but are 15 per lower than last fall’s peak.

Prices were essentially flat in May, gaining 0.5 per cent to an average national resale price of $346,881 – the highest on record.

More Info:

http://www.theglobeandmail.com/report-on-business/economy/home-sales-sputter-in-may/article1605995/

Time for a mortgage check-up?

Mortgage Girl — Fri, 11 Jun 2010 01:12:28 +0000

While about 80% of Canadians visit a doctor at least once a year to help ensure they remain physically healthy, the number of people who check their financial health by regularly reviewing their mortgage is far less.

Plenty can change in someone’s life in a year, never mind during the standard five-year mortgage a lot of Canadians sign up for. A career change, kids, retirement or newfound money or it could be that such a major event is on the horizon. All can affect the type of mortgage that fits just right.