Good news for brokers and homebuyers

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Broker channel economist: Record-low interest rates are here to stay and the economy is stronger than you think.

“So you want to know where interest rates are headed then listen to the Bank of Canada – and it’s saying no interest rate hike in 2016. There’s no need for one,” Michael Campbell, Verico’s economist, wrote in his latest economic report, which was obtained by MortgageBrokerNews.ca. “There’s no inflationary pressure or demand pressure implying a rate hike. Our manufacturing sector may be recovering but it’s not expanding – hence no upward pressure on rates.”

That’s good news for broker and, indeed, homebuyers; inexpensive mortgages were one of the driving factors that made 2015 one of the best year on record for many industry players.

According to Campbell, the Bank of Canada recognizes the stimulation the low looney has had on the economy and will be in no hurry to thrust the dollar higher by increasing interest rates.

“The bottom line is that The Bank of Canada doesn’t want a stronger dollar until our recovery becomes more secure, especially given the precarious global economic environment,” Campell wrote. “I suspect that in both the States and Canada the central bankers are far more concerned about a global shock impacting their respective economies than anything domestic.”

Also in the report, Campbell shared his bullish outlook for the economy – which is being driven by Vancouver and Toronto.

“The overall economy led by Greater Vancouver and Toronto is far stronger than most people realize,” Campbell wrote. “The only serious trouble spots in Canada are those regions impacted by the massive drop in resource prices – especially oil producing provinces. 

“But even in Alberta things may be improving if the 19,000 jobs created in March is not just a one off event.”
  • Matt on 2016-04-15 9:07:22 AM

    Yahhh- lets cheer on a sluggish economy so we can all make even more money then we deserve. Pathetic, self centered article... what garbage. Write something meaningful you debt vultures!

  • Paladin on 2016-04-21 11:02:55 PM

    2016
    January
    New Prime Minister Voted in by 20% of Voting TOTAL.
    Taxes go up.
    INFLATION AT 2009 LEVELS and HIGHER.
    FOOD COSTS OUT OF CONTROL
    government not implementing price controls
    NO INVESTIGATIONS INTO PRICE FIXING.
    2016
    unemployment out of government control
    ALL THE MONEY DISSAPEARED from 2015
    and now most young CANADIANS under 25 are out of work - no children - no plans for children . and living on the couch of their friends place because they were kicked out . many will not find work because CANADIAN IMMIGRATION has brought in over 500-1000000 temp workers since 2005. 10 years of destroying the CANADIAN ECONOMY is now showing cracks... so instead of RAISING INTERESTS rates to CONTROL the out of control 300% debt load some households are carrying,,, WHAT DO THEY DO ?? They decrease the rates making it easier to get DEEPER in debt and tighten the NOOSE around the neck of the CANADIAN TAXPAYER.

    have I made it CLEAR what 2016 is looking like ?

    I haven't even spoken out on the SECRET FOOD TAX of nearly 100% all because our FOOD IS IMPORTED and is KOSHER ??

    WAKE UP CANADA.

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