New economic status to keep an eye on!!!

HIGHLIGHTS OF THE WEEK

United States

•   With German growth slowing to a crawl, Europe’s economy is sputtering as its ability to solve its fiscal woes is increasingly being called into question.

•   The U.S. economy is also showing continued signs of weakness, raising the sobering prospect that the uncertainties of the last month may have begun bleeding into the real economy.

•   The risk of a shallow recession is rising.  However, we still feel that marginally positive growth is the more likely scenario.  Once August data begins trickling in next month, we will have a better sense of the real economic damage wrought by this month’s financial upheavals.               

Canada

•   Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty were called to testify on the state of the Canadian economy in front of the Commons Finance Committee this morning.

•   Both policy makers indicated that Canadian economic growth is headed for a material slowdown, but growth will accelerate in the second half of this year. A bout of weak domestic and international spending suggests that Canadian real GDP posted no growth in the second quarter, with the risk that it could easily dip into negative territory. The economic data heading into the third quarter have been equally disappointing. 

•   Going forward, fiscal policy is expected to stay the course, and Governor Mark Carney’s comments do not change our view on the future path of interest rates. We continue to believe that rates will remain low for an extended period of time.

This infomration is here to keep us on top of what the overall market is doing with regards to real estate and mortgage standings. If you are looking for a great mortgage rate check out the our 5 year fixed mortgage for a low 3.17 or if you are intending to buy then if you buy with one of my approved realtors we can get it as low as 3.09% fixed for 5 years. Feel free to contact me with any questions at 416-431-6662 or email at jimamitofski@networthmortgage.com.

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