No increase in mortgage costs seen for Sept.

Toronto Sun- Homeowners aren’t likely to face higher mortgage costs for at least the next month and some banks may even follow the Bank of Montreal in cutting new fixed-rate loans to compete for a dwindling number of buyers, specialists said.

According to a panel of mortgage experts polled by online mortgage rate comparison site RateSupermarket.ca, both fixed-rate and floating rate mortgages will remain unchanged for the next 30 to 45 days.

The sharper-than-expected slowdown in the Canadian economy, which grew at 2% in the second quarter, coupled with a barrage of negative data from the U.S., has increased the likelihood that Bank of Canada governor Mark Carney will pause in his interest rate tightening cycle in September.

Before Tuesday’s gross domestic product numbers, most economists had expected one more increase before rates went on hold…

No increase in mortgage costs seen for Sept. | Money | Toronto Sun

Canada’s economy grows faster than expected

The Gazette- Canada’s economy grew at a faster pace than expected in the first quarter of 2010, led by consumer spending, Statistics Canada reported Monday.

Gross domestic product rose at an annualized pace of 6.1 per cent between January and March, the biggest jump since the last quarter of 1999. Growth in the fourth quarter of last year was 4.9 per cent.

Most economists had expected GDP growth of 5.8 per cent in the first three months of 2010.

"Residential investment increased for a fourth consecutive quarter, as did consumer spending on goods and services," Statistics Canada said. "Export and import volumes both rose for a third consecutive quarter, with growth in imports outpacing growth in exports in the first quarter…”

Canada’s economy grows faster than expected

Real estate market to slow sharply, central bank says

The Globe and Mail-Europe’s debt troubles are roiling financial markets this morning, but this time going well beyond Greece. Statistics from the EU and Britain are unsettling investors as they paint a picture of widening deficits and heighten fears of debt default. The data drove Greece’s borrowing costs to prohibitive levels as the yield on 10-year government paper spiked to 8.5 per cent.

Greece’s situation worsened later this morning as Moody’s Investors Service cut its rating for the country’s sovereign debt to A3, down one notch, and warned of a further downgrade given the “fractious mobilization of external assistance.” Moody’s said the government must restore confidence. That drove the euro down even further against the U.S. dollar.

The total budget deficit among the 16 countries that use the euro surged to 6.3 per cent of gross domestic product last year, from just 2 per cent in 2008. Not only is that the fattest deficit since the common currency was introduced, it’s well above the EU limit of 3 per cent. Total government debt now stands at almost 80 per cent of GDP, nearly 10 percentage points above where it was a year earlier…

Real estate market to slow sharply, central bank says – The Globe and Mail

Canadian economy grows 5%, tops forecasts

Globe and Mail- The Canadian economy expanded by a greater-than-expected 5 per cent in the fourth quarter, raising the likelihood of interest rate hikes later this year.

The country’s gross domestic product grew at the fastest annualized pace since the third quarter of 2000, Statistics Canada said Monday.

The economy’s burst boosts the odds of a string of rate hikes in the second half of the year. The Bank of Canada announces its interest-rate decision tomorrow, and while rates are on hold for now, the tone of the announcement could well acknowledge that growth is picking up speed at a faster pace than anticipated.

“This report shouts strength, and increases the odds the Bank of Canada will begin to hike interest rates in July and stay on that path in the following decisions,” said Douglas Porter, deputy chief economist at Bank of Montreal…

Canadian economy grows 5%, tops forecasts – The Globe and Mail

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