Market Update - Jun 2019
Our Canadian economy looks robust if the latest job reports
are anything to go by.Canada gained 27,700 jobs in May and
the unemployment rate dropped to 5.4 per cent. This is the
lowest since 1976. Bank of Canada thinks our economy is
regaining strength after a temporary stall last December,
despite the disruptive trade war between U.S and China.
In spite of this, most of experts believe Bank of Canada is
going to hold the rate for a while due to the growing concern of
a slowdown in the U.S economy possibly leading to recession
which would have a big effect on our economy. Some
economists even suggest that the Bank of Canada will likely cut
the rate this year if the U.S Federal Reserve cuts their rates.
At the mortgage end, we have seen steady rate drops over the
past six months. It does not appear that the downward trend
is ending any time soon. It might be worth considering
switching or early renewal of your existing term to a better
discounted rate if the savings exceed the penalty amount for
you to break the term.
Please feel free to contact us to discuss this option or any
other mortgage inquiries.
Michelle Feng, MBA, CFP
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