There are signs of the economy slowing down again. US economy seems to be stuck, European economy has accumulated large debts due to the Greek bailout, G20 economies promising to cut their deficits in half by 2013 which means less or no more stimulus spending, home sales are down last month 23% compared to last year, inflationary pressures have decreased and the bond yields which determine the fixed mortgage rates have dropped as well.
How does this impact your mortgage?
In the near future, fixed rates should come down and as I write this newsletter, lenders have dropped their fixed rates slightly. In the long term, rates (prime & fixed) will increase but at a slower pace. In my opinion, until the US economy turns around by creating jobs we will see moderate rate increases.
Nawar Naji, AMP
Mortgage Broker - Mortgage Alliance
Brokerage License #10530
www.GTAmortgageAdvisor.ca
