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A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!

Monday, June 22, 2020

RateSpy: Steady decline in core inflation to disturb mortgage rates

Canada’s core inflation is likely to continue falling to record lows, in turn affecting potential mortgage rates, according to a RateSpy analysis.

“The Bank of Canada wants average core inflation at/near 2%, but it’s currently 1.67% and diving,” RateSpy said. “That’s noteworthy for borrowers given inflation expectations are a primary determinant of mortgage rates.”

And while the recent economic restart is bolstering optimism, the coronavirus is expected to leave a long shadow, similar to its impact on the nation’s purchasing power.

“Inflation’s descent may slow thanks to rebounding oil prices, but it’ll continue dropping … potentially to lows we haven’t seen in a few decades,” RateSpy said.

Volatility will remain the running theme even as the Canadian financial system inches its way back towards pre-pandemic conditions, according to Canadian Imperial Bank of Commerce.

“CIBC said it has yet to speak to an investor that thinks Canada will emerge from recession faster than in 2009,” RateSpy said. “At a minimum, it usually takes a couple years for inflation to rebound meaningfully above 2% following a recession, but with record unemployment this time, it could take longer.”

A silver lining is that the prolonged recovery phase will be supported by the Bank of Canada’s record-low interest rates, according to governor Tiff Macklem. But RateSpy stressed that it will be a long, hard road for the market.

“Two percent inflation is hard enough to sustain in an old economy facing over-indebtedness, an ageing population, technology-driven disinflation, etc. – let alone in a recession-ravaged economy where more than 10% of workers could remain unemployed or under-employed for years,” RateSpy said.

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