Market Update - August 2018

Time flies! Kids will be back in school soon and we are doing our best
to enjoy the rest of the summer without breathing in too much
smoke.

Meanwhile in the mortgage sector we are counting down to the next
important date on our calendar which is Oct 31st. This is the last
day of the current fiscal year for most lenders. Traditionally we
expect rates rising temporarily and policies tightened up around this
time. It gives lenders down time to ramp up their game, review their
work over the past twelve months and tweak their policies and plans
for the next year. For these reasons we always recommend our
clients with pending applications to have them pre-approved and
reserve their rates before October to avoid potential rising of rates
and tightening policies during the lenders’ transitional time.

The most recent job report continues to picture a bright labor
market in Canada with July’s unemployment rate hitting the lowest
level of 5.8% in the past 40 years. However it should be noted that
most of the new jobs were either part time or government positions,
so there is some skepticism if the job market can sustain this level
and how well private companies are performing these days. We also
learned that our second quarter’s inflation rate hit 3% which is the
highest level in the past seven years. There is speculation according
to some economists that the next move of the Bank of Canada could
be a rate increase this September 5th.

Enjoy the rest of summer!

Sincerely,

Michelle Feng
Owner, Verico Smartymortgage
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