Economic information that will affect the mortgage and real estate situation….good to know!

United States•    This week started on the wrong foot.  On Monday afternoon, two days ahead of its deadline, it became clear that the Joint Select Committee on Deficit Reduction would fail to deliver proposals to reduce the fiscal deficit.

•    If there is no agreement before January of next year, and the payroll tax cuts and emergency unemployment extensions expire, the combined impact over the next two years could detract 1.4 percentage points from overall U.S. GDP

•    On Wednesday a failed 10-year Bund auction in Germany sent euro zone sovereign bond yields up and the euro tumbled vis-à-vis its major peer currencies. On Friday Italy paid a yield of 7.81% at a two-year bond auction – up from 4.62% paid in October at a similar sale.   

Canada•    With few Canadian data releases this week to reflect upon, we take note of the fact that today is Black Friday – the unofficial start to the holiday shopping season.  While the date has been marked with a solid red ‘X’ on U.S. calendars for years, Canadian retailers are increasingly using the occasion to get the season kick-started on this side of the border.

•    While upcoming festivities are increasingly taking over the forefront of consumer’s minds, developments abroad serve as a stark reminder that the economic recovery is still very much fragile in nature.

•    In spite of this uncertainty, all signs point to a decent, but modest, holiday shopping season ahead.  Recent surveys suggest that Canadians are planning to fork over just as much as they did last year.  While intentions are there, growing household debt burdens and wounded consumer confidence serve as headwinds for the retail sector performance during the holidays.

Like everything take this information to use on what you are looking to do in mortgage and real estate matters. We are here to inform and assit get the best options for your mortgage and real estate needs!

Right now a great 5 year fixed special is 3.19%. What a deal if you are looking to re-do your current mortgage or buy a home. Contact me by email at jimamitofski@networthmortgage.com or contact me in Toronto 416-431-6662 or in Durham region 905-903-0012.

 

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