Proudly Ranked #1 Toronto Mortgage Brokers since 2002!

This Week's Mortgage Market Update Contains:

• Carney hints low interest rates will last
• Why use a mortgage broker?
• Jobs, housing data bolster growth outlook

This Week's Quotation:

“You gain strength, courage and confidence by every experience in which you really stop to look fear in the face. You are able to say to yourself, 'I have lived through this horror. I can take the next thing that comes along.' You must do the thing you think you cannot do.” -  Eleanor Roosevelt (1884 - 1962)

This Week's Highlights:

• Housing starts decline slightly in October
• Employment tumbled in October
• Annual headline and core inflation rates up in September

Carney hints low interest rates will last

Bank of Canada governor Mark Carney signaled strongly Wednesday that he intends to keep interest rates at super-low levels for an extended period — perhaps into 2013 — despite a recent spate of good economic news. He gave no indication, however, whether his next move might be to actually reduce the trendsetting overnight rate from the current one per cent, as at least two major economists have urged. Read more....

Why use a mortgage broker?

Buying her first house and getting her first mortgage was an overwhelming experience for Roslyn Judd. She had signed a deal to buy a new house, she had put down her deposit, and she was pre-approved for a mortgage. Now she had to sign a final deal with her bank to lend her hundreds of thousands of dollars. Read more....

Jobs, housing data bolster growth outlook

(Reuters) - New U.S. claims for jobless benefits hit a seven-month low last week and permits for future home construction rebounded strongly in October, the latest data to suggest the economy was gaining traction. The improving economic picture was spoiled somewhat by another report on Thursday showing factory activity in the Mid-Atlantic region slowed this month on weak orders. However, employers hired more workers and increased working hours. Read more....

"THIS WEEK'S HIGHLIGHTS"

Housing starts decline slightly in October

Canadian housing starts remained essentially steady in October, falling 0.6% to 207,600 annualized units from September's 208,800 (earlier reported as 207,600). October's slight decline in the pace of housing starts was entirely due to a 9.0% drop in the urban singles component, to 60,900 from 66,900 in September. The volatile urban multiples component continued to climb in October, with a 1.7% increase to 123,600. Rural starts also rose, from 20,400 annualized units to 23,100. On a regional basis, big declines in urban starts were seen in Quebec (-28.8%) and the Atlantic provinces (-43.5%), following strength in these areas last month. These declines were the result of a slower pace of construction in both the singles and multiples components. Ontario, the Prairies and British Columbia all saw gains, of 11.7%, 28.2% and 1.5%, respectively. These gains were entirely driven by multiples starts, with singles declining in all areas. Growth in multiples was particularly pronounced in the Prairies, with the multiples component increasing by over 93%.

Employment tumbled in October

Canadian employment fell by 54,000 in October. The labour force contracted by 13,800 in October and the unemployment rate rose to 7.3% from 7.1% in September. The October report showed a decline in employment in the goods producing industries where the number of employed fell by 51,900. Construction (-20,100) and manufacturing (-48,400) jobs were cut in the month. In the services side of the economy, employment dipped by 2,000. All jobs lost were fulltime with 71,700 positions cut. Part-time employment rose by 17,700. On net, full-time employment is still up by 198,200 in 2011. The public sector shed 3,800 positions. Private sector employment reported 32,000 jobs cuts. Still, the declines over the three month period only reversed 71% of July's 94,500 surge. The number of self-employed individuals was down by 18,100 following the 38,900 increase in September. The year-over-year gain in average hourly wages for permanent workers slipped to 1.3%, a tad slower than September's 1.6% pace and still well below the average 2.3% in the first half of the year.

Annual headline and core inflation rates up in September

The September consumer price report showed the headline index rose 0.2% in the month however, the core rate ran much hotter, rising 0.5%. The year-over-year headline inflation rate edged up to 3.2% in September from August's 3.1% pace. The annual core rate was 2.2%, above the 1.9% recorded in August. Women's clothing prices spurted by 10.5% in September, which, supplemented by rising tuition fees (4.2%), car prices, and air transportation costs, boosted the inflation rates. Financial services costs also rose 4.8% in September. Moderating these increases were declines in electricity costs (which partially reversed increases in July and August) and insurance costs. The rise in the headline rate was also dampened by declining prices for fresh fruit and vegetables, and gasoline, three items that are not included in the core measure. The rise in vehicle prices and larger than seasonal increase in clothing prices accounted for about 0.2% of the monthly increase. Compared to September 2010, prices for gasoline were up 22.7%, fuel oil prices rose 27.4%, vehicle insurance premiums rose 5.6%, and food from restaurants and meat prices were also higher. At the same time, mortgage interest costs, furniture prices, computer equipment, and natural gas prices declined. On balance, the annual inflation rates, both headline and core, moved higher in the month.