Economic news just in…Good to know.

United States

•    Policymakers in Europe met this week to hammer out a three point plan to save the euro zone. The plan includes a 50% voluntary write down of Greek debt, a strategy to recapitalize the European banking system, and a plan to optimize the use of the existing bailout fund (the EFSF) to safeguard the debt of other vulnerable sovereigns.

 •   The plan is a step in the right direction, but its success will depend on a number of factors that are as of yet unknown. Even more than that, it is contingent on the euro zone economy avoiding a significant deterioration in the economic outlook.

•    In the United States, the Obama administration’s plan to reform the Home Affordable Refinancing Program should give some support to the housing market, but it will not solve the problem of the number of households that simply owe too much on their mortgages relative to the value of their homes. 

Canada

•    This week, financial markets focused their attention on the plan put together by European leaders to address Europe’s fiscal crisis, as well as on the Bank of Canada’s interest rate decision and subsequent Monetary Policy Report.

•    The Bank of Canada announced that it would leave interest rates unchanged.  This was widely expected by financial markets.

•    The central bank also released its Monetary Policy Report, in which it downgraded its near-term growth outlook for Canada, bringing it more in line with forecasts by TD Economics and other private sector analysts.

I strongly belive this information is good to keep an eye when balancing what to do in your mortgage and real estate portfolio.

Right now, we at Networth Mortgage Centre, can help you with offering you the best options possible. Our rates start from as low as 2.50% and this is good for purchases, refinances, debt consolidation, and more. Feel free to contact us.

 

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