Tips for dealing with a renovations contractor... Some good tips for clients wanting to renovate. With the changes to refinance loan to values, remember to suggest using the MERIX Purchase Plus Improvements program to renovate at the time of purchase instead of waiting until there is equity to refinance. Your clients get the upgrades sooner and the home they really want.
• TSX -16.53 to 13,892.57 recovered from earlier triple digit losses after the U.S. Federal Reserve said it expects a moderate economic recovery to continue but will leave interest rates "exceptionally low" for "an extended period."
• DOW +95.59 to 12,690.96 Federal Reserve chairman Ben Bernanke held a historic news conference, the first time in the Fed's 98-year history that a chairman has begun holding regular sessions with reporters. The Fed left its key lending rate range unchanged at between zero and 0.25 per cent for at least the next two meetings, while it signalled that its $600-billion Treasury bond-buying program will end in June as planned because the economy has strengthened and companies are starting to hire more.
• Dollar +.16c to 105.22c USD as the US dollar touched a 3 year low
• Oil +$.55 to $112.76USD per barrel
• Gold +$13.60 to $1517.10 per ounce setting another new record high.
• Canadian 5 yr bond yields markets +.06bps to 2.65. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is above the comfort zone at 1.69.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Thursday, April 28, 2011
Wednesday, April 27, 2011
Financial Update: April 27, 2011
Safe as houses? That loud knocking is falling prices...
Somewhat alarmist in tone, but I think the following sums it up from Will Dunning:
“I’m not in the camp that says we have a big correction coming, but I think we are looking at a fairly long period of moderate changes in house prices – plus or minus 2 per cent...”
• TSX +1.78 to 13,909.10 as investors weighed a drop in commodity prices against a long list of earnings reports from both sides of the border.
• DOW +115.49 to 12,595.37 hitting its highest level in 3 years
• Dollar +.30c to 105.06c USD after hitting its highest level since 2007 with stronger commodity prices and as traders awaited word from the U.S. Federal Reserve on interest rates and the state of the world's largest economy.
• Oil -$.07 to $112.21USD per barrel
• Gold -$5.60 to $1503.50 per ounce
• Canadian 5 yr bond yields markets -.06bps to 2.59. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is above the comfort zone at 1.75. Using the unpublished specials, with the recent decrease to the 5 year fixed to 4.09%, the spread there is reduced to 1.50.
Somewhat alarmist in tone, but I think the following sums it up from Will Dunning:
“I’m not in the camp that says we have a big correction coming, but I think we are looking at a fairly long period of moderate changes in house prices – plus or minus 2 per cent...”
• TSX +1.78 to 13,909.10 as investors weighed a drop in commodity prices against a long list of earnings reports from both sides of the border.
• DOW +115.49 to 12,595.37 hitting its highest level in 3 years
• Dollar +.30c to 105.06c USD after hitting its highest level since 2007 with stronger commodity prices and as traders awaited word from the U.S. Federal Reserve on interest rates and the state of the world's largest economy.
• Oil -$.07 to $112.21USD per barrel
• Gold -$5.60 to $1503.50 per ounce
• Canadian 5 yr bond yields markets -.06bps to 2.59. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is above the comfort zone at 1.75. Using the unpublished specials, with the recent decrease to the 5 year fixed to 4.09%, the spread there is reduced to 1.50.
Tuesday, April 26, 2011
Financial Update: April 26, 2011
The 'thrill' of buying a house...
More than two-thirds of Canadians cited a “good feeling” toward the property as a reason to buy...Confirmation that there is a lot of emotion involved in the home buying process, and where there's emotion, sometimes rationale thought is marginalized. And a reminder to ensure your customers understand the very real costs of homeownership.
• TSX -64.70 to 13,907.32 amid concerns that China may further move to tighten monetary policy in a bid to slow resource demand and inflation
• DOW -26.11 to 12,479.88
• Dollar -.09c to 104.76c USD as commodity prices backed off slightly
• Oil -$.01 to $112.28USD per barrel
• Gold +$5.30 to $1509.10 per ounce hits another new record high
• Canadian 5 yr bond yields markets -.05bps to 2.65. The spread (based on the MERIX 5 yr rate published rate of 4.34%) is over the top of the comfort zone at 1.69, however given current discount levels, real spreads are just within the comfort zone.
More than two-thirds of Canadians cited a “good feeling” toward the property as a reason to buy...Confirmation that there is a lot of emotion involved in the home buying process, and where there's emotion, sometimes rationale thought is marginalized. And a reminder to ensure your customers understand the very real costs of homeownership.
• TSX -64.70 to 13,907.32 amid concerns that China may further move to tighten monetary policy in a bid to slow resource demand and inflation
• DOW -26.11 to 12,479.88
• Dollar -.09c to 104.76c USD as commodity prices backed off slightly
• Oil -$.01 to $112.28USD per barrel
• Gold +$5.30 to $1509.10 per ounce hits another new record high
• Canadian 5 yr bond yields markets -.05bps to 2.65. The spread (based on the MERIX 5 yr rate published rate of 4.34%) is over the top of the comfort zone at 1.69, however given current discount levels, real spreads are just within the comfort zone.
Monday, April 25, 2011
Financial Update: April 25, 2011
Canadian consumers expected to remain cautious as interest rates set to rise...
Once consumers pay down debt and spend more money on food and gas, there isn't much left for anything else.
• TSX +74.54 to 13,972.02 Mining and energy stocks pushed the Toronto stock market higher Thursday as a weak U.S. dollar helped push up prices for oil and metals.
• DOW +52.45 to 12,505.99
• Dollar -.05c to 104.85c USD following data showing that Canadian retail sales rose by 0.4 per cent in February to $37.3 billion, which was slightly below economist expectations of a 0.6 per cent rise.
• Oil +$.84 to $112.29USD per barrel
• Gold +$4.90 to $1503.80 per ounce hits another new record high
• Canadian 5 yr bond yields markets -.02bps to 2.70. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.64.
(provided by Barb Morgan, DBD Ontario Southwest)
Once consumers pay down debt and spend more money on food and gas, there isn't much left for anything else.
• TSX +74.54 to 13,972.02 Mining and energy stocks pushed the Toronto stock market higher Thursday as a weak U.S. dollar helped push up prices for oil and metals.
• DOW +52.45 to 12,505.99
• Dollar -.05c to 104.85c USD following data showing that Canadian retail sales rose by 0.4 per cent in February to $37.3 billion, which was slightly below economist expectations of a 0.6 per cent rise.
• Oil +$.84 to $112.29USD per barrel
• Gold +$4.90 to $1503.80 per ounce hits another new record high
• Canadian 5 yr bond yields markets -.02bps to 2.70. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.64.
(provided by Barb Morgan, DBD Ontario Southwest)
Thursday, April 21, 2011
Financial Update: April 21, 2011
Canadians struggling to save and pay off debt; 38 per cent have no savings...
When you’re assisting your clients with their budgets, are you suggesting a cushion of three to six months of income saved to get through unexpected financial shocks?
· TSX +160.55 to 13,897.48 racked up a solid gain as a weaker American currency helped send oil prices surging while investors were encouraged by positive earnings reports.
· DOW +186.79 to 12,453.54
· Dollar +.35c to 104.90c USD Weakness in the American dollar and higher oil prices had earlier pushed the currency to a fresh 3 1/2-year high of 105.29 cents US.
· Oil +$3.17 to $111.45USD per barrel oil prices breezed past $111 a barrel after a report showed U.S. gasoline supplies fell for a second week, suggesting higher fuel costs haven't yet curbed demand
· Gold +$3.80 to $1498.90 per ounce hits another new record high
· Canadian 5 yr bond yields markets +.05bps to 2.72. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.62.
(provided by Barb Morgan, DBD Ontario Southwest)
When you’re assisting your clients with their budgets, are you suggesting a cushion of three to six months of income saved to get through unexpected financial shocks?
· TSX +160.55 to 13,897.48 racked up a solid gain as a weaker American currency helped send oil prices surging while investors were encouraged by positive earnings reports.
· DOW +186.79 to 12,453.54
· Dollar +.35c to 104.90c USD Weakness in the American dollar and higher oil prices had earlier pushed the currency to a fresh 3 1/2-year high of 105.29 cents US.
· Oil +$3.17 to $111.45USD per barrel oil prices breezed past $111 a barrel after a report showed U.S. gasoline supplies fell for a second week, suggesting higher fuel costs haven't yet curbed demand
· Gold +$3.80 to $1498.90 per ounce hits another new record high
· Canadian 5 yr bond yields markets +.05bps to 2.72. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.62.
(provided by Barb Morgan, DBD Ontario Southwest)
Wednesday, April 20, 2011
Financial Update: April 20, 2011
Inflation Comes Home leading economists to predict that another strong reading in April could all but solidify an interest-rate hike in July.
Jury convicts Taylor Bean's majority owner on all 14 counts in $3B mortgage fraud trial
* TSX +34.50 to 13,736.83 led by gains in the mining sector on rising copper prices.
* DOW +85.16 to 12,266.75
* Dollar +.84c to 104.16c USD closed sharply higher after inflation data affirmed the view that the Bank of Canada will likely move to hike interest rates this summer. Data showed that increases in gasoline and food prices pushed the country's annual inflation rate up by 1.1 points to 3.3 per cent last month, the first time it has topped three per cent since September 2008.
* Oil +$1.03 to $108.15USD per barrel as the American greenback weakened against other major currencies. Crude, which is priced in dollars, tends to rise as the dollar falls and makes oil cheaper for those holding other currencies.
* Gold +$2.20 to $1495.10 per ounce The widely-traded June contract reached $1,500.50, before giving back some to settle at another new record high. Adding momentum to the move into gold was the continuing government debt crisis in the euro zone and growing signs of inflation.
* Canadian 5 yr bond yields markets +.07bps to 2.67. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.67.
(information provided by Barb Morgan, DBD Ontario Southwest)
Jury convicts Taylor Bean's majority owner on all 14 counts in $3B mortgage fraud trial
* TSX +34.50 to 13,736.83 led by gains in the mining sector on rising copper prices.
* DOW +85.16 to 12,266.75
* Dollar +.84c to 104.16c USD closed sharply higher after inflation data affirmed the view that the Bank of Canada will likely move to hike interest rates this summer. Data showed that increases in gasoline and food prices pushed the country's annual inflation rate up by 1.1 points to 3.3 per cent last month, the first time it has topped three per cent since September 2008.
* Oil +$1.03 to $108.15USD per barrel as the American greenback weakened against other major currencies. Crude, which is priced in dollars, tends to rise as the dollar falls and makes oil cheaper for those holding other currencies.
* Gold +$2.20 to $1495.10 per ounce The widely-traded June contract reached $1,500.50, before giving back some to settle at another new record high. Adding momentum to the move into gold was the continuing government debt crisis in the euro zone and growing signs of inflation.
* Canadian 5 yr bond yields markets +.07bps to 2.67. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.67.
(information provided by Barb Morgan, DBD Ontario Southwest)
Tuesday, April 19, 2011
Financial Update: April 19, 2011
Outlook negative: Chance of S&P U.S. downgrade rattles markets...
S&P noted that U.S. policymakers have yet to agree on how they will change the course of recent fiscal deterioration.
CDN bond yields are lower due to the demand for an alternative to US treasuries.
* TSX -96.79 to 13,702.33 markets around the world were rattled following bad marks given to the U.S. government's debt by a rating agency. TSX was also influenced by a drop in the highly influential price of oil after Saudi Arabia announced that it cut daily output to 8.3 million barrels in March from 9.1 million barrels in February because of what it saw as excess global supply.
* DOW -140.24 to 12,201.59 US stocks plunged after ratings agency Standard & Poor's issued its first warning on US sovereign debt, citing Washington's looming debt and fiscal deficits and lowered its’ outlook to "negative" from "stable," but said the United States had until 2013 to come up with a credible plan for addressing its financial problems.
* Dollar -.45c to 103.71c USD amid a sharp decline in oil prices, while the American dollar strengthened against other currencies. "The idea that the U.S. public finances are on an unsustainable trajectory is hardly new news," said a commentary from Capital Economics.
* Oil -$2.54 to $107.12USD per barrel.
* Gold +$6.90 to $1492.90 per ounce bullion prices advanced after the S&P announcement as the June contract rose to a fresh record close.
* Canadian 5 yr bond yields markets -.07bps to 2.60. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.74.
S&P noted that U.S. policymakers have yet to agree on how they will change the course of recent fiscal deterioration.
CDN bond yields are lower due to the demand for an alternative to US treasuries.
* TSX -96.79 to 13,702.33 markets around the world were rattled following bad marks given to the U.S. government's debt by a rating agency. TSX was also influenced by a drop in the highly influential price of oil after Saudi Arabia announced that it cut daily output to 8.3 million barrels in March from 9.1 million barrels in February because of what it saw as excess global supply.
* DOW -140.24 to 12,201.59 US stocks plunged after ratings agency Standard & Poor's issued its first warning on US sovereign debt, citing Washington's looming debt and fiscal deficits and lowered its’ outlook to "negative" from "stable," but said the United States had until 2013 to come up with a credible plan for addressing its financial problems.
* Dollar -.45c to 103.71c USD amid a sharp decline in oil prices, while the American dollar strengthened against other currencies. "The idea that the U.S. public finances are on an unsustainable trajectory is hardly new news," said a commentary from Capital Economics.
* Oil -$2.54 to $107.12USD per barrel.
* Gold +$6.90 to $1492.90 per ounce bullion prices advanced after the S&P announcement as the June contract rose to a fresh record close.
* Canadian 5 yr bond yields markets -.07bps to 2.60. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.74.
Monday, April 18, 2011
Financial Update: April 18, 2011
Time management secrets anyone can use...
The Web is like the next-door neighbor who keeps asking us to play when we know we have homework to do.
Is 1st half gain 2nd half pain?
...The U.S. economy’s weaknesses become Canada’s own, an inescapable reality that could be made painfully clear in the second half of 2011...but one that could also keep interest rates lower for longer.
* TSX -22.68 to 13,799.12 slightly lower at the end of a losing week as investors took some profits from a strong run on markets that has gone on practically without a break since last summer while data from China kept inflation and interest rate concerns front and centre.
* DOW +56.68 to 12,341.83
* Dollar -.03c to 104.16c USD closed lower against the American currency Friday but well off early lows as oil prices advanced.
* Oil +$1.55 to $109.66USD per barrel
* Gold +$13.60 to $1486.00 per ounce closed at another all-time record high.
* Canadian 5 yr bond yields markets -.07bps to 2.67. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.67.
(courtesy of Barb Morgan, DBD Ontario Southwest)
The Web is like the next-door neighbor who keeps asking us to play when we know we have homework to do.
Is 1st half gain 2nd half pain?
...The U.S. economy’s weaknesses become Canada’s own, an inescapable reality that could be made painfully clear in the second half of 2011...but one that could also keep interest rates lower for longer.
* TSX -22.68 to 13,799.12 slightly lower at the end of a losing week as investors took some profits from a strong run on markets that has gone on practically without a break since last summer while data from China kept inflation and interest rate concerns front and centre.
* DOW +56.68 to 12,341.83
* Dollar -.03c to 104.16c USD closed lower against the American currency Friday but well off early lows as oil prices advanced.
* Oil +$1.55 to $109.66USD per barrel
* Gold +$13.60 to $1486.00 per ounce closed at another all-time record high.
* Canadian 5 yr bond yields markets -.07bps to 2.67. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is well over the top of the comfort zone at 1.67.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Friday, April 15, 2011
Financial Update: April 15, 2011
Mind the Gap! Loonie up, price gap growing...
“Canadians should get accustomed to a lofty loonie, and we continue to look for the currency to remain above par through 2012, if not beyond...That will help keep inflation low and interest rates steady"...
· TSX -11.84 to 13,821.80 as investors took some gains off the table after a strong runup in the first quarter of 2011.
· DOW +14.16 to 12,285.15
· Dollar +.28c to 104.19c USD
· Oil +$1.00 to $108.11USD per barrel in the wake of data showing a bigger than expected drop in U.S. gasoline inventories last week.
· Gold +$16.80 to $1472.40 per ounce
· Canadian 5 yr bond yields markets -.01bps to 2.74. The spread (based on the MERIX 5 yr rate published rate of 4.39%) is back over the top of the comfort zone at 1.65.
(courtesy of Barb Morgan, DBD Ontario Southwest)
“Canadians should get accustomed to a lofty loonie, and we continue to look for the currency to remain above par through 2012, if not beyond...That will help keep inflation low and interest rates steady"...
· TSX -11.84 to 13,821.80 as investors took some gains off the table after a strong runup in the first quarter of 2011.
· DOW +14.16 to 12,285.15
· Dollar +.28c to 104.19c USD
· Oil +$1.00 to $108.11USD per barrel in the wake of data showing a bigger than expected drop in U.S. gasoline inventories last week.
· Gold +$16.80 to $1472.40 per ounce
· Canadian 5 yr bond yields markets -.01bps to 2.74. The spread (based on the MERIX 5 yr rate published rate of 4.39%) is back over the top of the comfort zone at 1.65.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, April 13, 2011
Financial Update: April 13, 2011
BoC ups growth, stands pat on rates...
“It will be difficult to pin down when the next hike will be when you have a central bank that takes the currency into account when making its policy decision...”
Cue the MERIX 50/50...and choose both variable and fixed...
* TSX -195.46 to 13,801.40 fell sharply for the second consecutive day on another violent pullback in commodities as Goldman Sachs Group Inc. told investors to take profits while warning of a correction in oil prices. Markets also suffered after Japan acknowledged its nuclear situation had worsened to the equivalent level seven of Chernobyl. “For the last several weeks, world stock markets have taken every disappointment and uncertainty the world could throw at them and continued to drive higher. Like building a Jenga tower higher and higher, however, at some point only the slightest nudge can be all that it takes to send things tumbling down,” said Colin Cieszynski, market analyst at CMC Markets Canada.
* DOW -117.53 to 12,263.58
* Dollar -.72c to 103.83c USD after the Bank of Canada said it would leave its key interest rate unchanged at one per cent. Analysts said it looked likely the bank wouldn't move on rates until at least mid-2011.
* Oil -$3.67 to $106.25USD per barrel
* Gold -$14.50 to $1453.60 per ounce
* Canadian 5 yr bond yields markets -.09bps to 2.80. The spread (based on the MERIX 5 yr rate published rate of 4.39%) is back over the top of the comfort zone at 1.59.
(courtesy of Barb Morgan, DBD Ontario Southwest)
“It will be difficult to pin down when the next hike will be when you have a central bank that takes the currency into account when making its policy decision...”
Cue the MERIX 50/50...and choose both variable and fixed...
* TSX -195.46 to 13,801.40 fell sharply for the second consecutive day on another violent pullback in commodities as Goldman Sachs Group Inc. told investors to take profits while warning of a correction in oil prices. Markets also suffered after Japan acknowledged its nuclear situation had worsened to the equivalent level seven of Chernobyl. “For the last several weeks, world stock markets have taken every disappointment and uncertainty the world could throw at them and continued to drive higher. Like building a Jenga tower higher and higher, however, at some point only the slightest nudge can be all that it takes to send things tumbling down,” said Colin Cieszynski, market analyst at CMC Markets Canada.
* DOW -117.53 to 12,263.58
* Dollar -.72c to 103.83c USD after the Bank of Canada said it would leave its key interest rate unchanged at one per cent. Analysts said it looked likely the bank wouldn't move on rates until at least mid-2011.
* Oil -$3.67 to $106.25USD per barrel
* Gold -$14.50 to $1453.60 per ounce
* Canadian 5 yr bond yields markets -.09bps to 2.80. The spread (based on the MERIX 5 yr rate published rate of 4.39%) is back over the top of the comfort zone at 1.59.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Tuesday, April 12, 2011
Financial Update: April 12, 2011
Gas-price hike doubly painful...
Gas prices in Canada have risen 23% since September 2010. When looking at affordability in our industry we typically focus on household costs, but gas and oil prices also translate to real costs affecting household budgets. Something for you to consider when discussing budgets and size of mortgage with potential customers.
IMF boosts outlook for Canadian economy...
· TSX -211.57 to 13,996.86 Closed sharply lower below the 14,000 mark, led by big declines in energy and mining stocks as oil and metal prices gave up some of last week's gains.
· DOW +1.06 to 12,381.11
· Dollar +.10c to 104.55c USD as traders looked to Tuesday's interest rate announcement from the Bank of Canada. It is widely expected the central bank will leave its key rate unchanged at one per cent but will be looking to its accompanying statement for its take on the economy and the impact of a rapidly rising loonie, which started the year just above par with the U.S. dollar.
· Oil -$2.87 to $109.92USD per barrel After Libya’s Moammar Gadhafi appeared to accept a cease-fire plan with rebel forces.
· Gold -$6.00 to $1468.10 per ounce
· Canadian 5 yr bond yields markets +.03bps to 2.89. The spread (based on the MERIX 5 yr rate published rate of 4.39%) is near the top of the comfort zone at 1.50.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Gas prices in Canada have risen 23% since September 2010. When looking at affordability in our industry we typically focus on household costs, but gas and oil prices also translate to real costs affecting household budgets. Something for you to consider when discussing budgets and size of mortgage with potential customers.
IMF boosts outlook for Canadian economy...
· TSX -211.57 to 13,996.86 Closed sharply lower below the 14,000 mark, led by big declines in energy and mining stocks as oil and metal prices gave up some of last week's gains.
· DOW +1.06 to 12,381.11
· Dollar +.10c to 104.55c USD as traders looked to Tuesday's interest rate announcement from the Bank of Canada. It is widely expected the central bank will leave its key rate unchanged at one per cent but will be looking to its accompanying statement for its take on the economy and the impact of a rapidly rising loonie, which started the year just above par with the U.S. dollar.
· Oil -$2.87 to $109.92USD per barrel After Libya’s Moammar Gadhafi appeared to accept a cease-fire plan with rebel forces.
· Gold -$6.00 to $1468.10 per ounce
· Canadian 5 yr bond yields markets +.03bps to 2.89. The spread (based on the MERIX 5 yr rate published rate of 4.39%) is near the top of the comfort zone at 1.50.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Monday, April 11, 2011
Financial Update: April 11, 2011
No new jobs created in March as robust economic growth shows signs of slowing...
However, the 92,000 lost part time jobs were replaced by 90,000 full time jobs, so Canadians are obtaining better quality of work.
Escaping from mortgage prison...
In the U.S. there are less consequences when posing the ethical question of when or if it’s ever ok to walk away from your mortgage.
· TSX +100.66 to 14,208.43 amid rising oil and mining stocks as a weak American currency helped send oil prices surging and gold to fresh record highs. Canada Mortgage and Housing Corp. said that the seasonally adjusted annual rate of housing starts for all types of housing rose to 188,800 units nationally in March, due to multiple dwelling starts in urban areas and single-unit starts in rural areas.
· DOW -29.44 to 12,380.05 as President Barack Obama and congressional leaders tried to avert a government shutdown that all sides say would inconvenience millions of people and damage the economy
· Dollar +.12c to 104.45c USD after earlier rising to almost 105 cents — its highest in 3 1/2 years and despite a weaker than expected employment report for March. The central bank is widely expected to leave its key interest rate unchanged Tuesday at one per cent and traders will be interested to see the bank's take on how the higher loonie is affecting the economy
· Oil +$2.49 to $112.79USD per barrel
· Gold +$14.80 to $1474.10 per ounce Gold prices set a another new record high for the fourth time in a week as a week US dollar boosted demand. Silver climbed above $40 an ounce to a 31 year high.
· Canadian 5 yr bond yields markets +.01bps to 2.86. The spread (based on the MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.53.
(courtesy of Barb Morgan, DBD Ontario Southwest)
However, the 92,000 lost part time jobs were replaced by 90,000 full time jobs, so Canadians are obtaining better quality of work.
Escaping from mortgage prison...
In the U.S. there are less consequences when posing the ethical question of when or if it’s ever ok to walk away from your mortgage.
· TSX +100.66 to 14,208.43 amid rising oil and mining stocks as a weak American currency helped send oil prices surging and gold to fresh record highs. Canada Mortgage and Housing Corp. said that the seasonally adjusted annual rate of housing starts for all types of housing rose to 188,800 units nationally in March, due to multiple dwelling starts in urban areas and single-unit starts in rural areas.
· DOW -29.44 to 12,380.05 as President Barack Obama and congressional leaders tried to avert a government shutdown that all sides say would inconvenience millions of people and damage the economy
· Dollar +.12c to 104.45c USD after earlier rising to almost 105 cents — its highest in 3 1/2 years and despite a weaker than expected employment report for March. The central bank is widely expected to leave its key interest rate unchanged Tuesday at one per cent and traders will be interested to see the bank's take on how the higher loonie is affecting the economy
· Oil +$2.49 to $112.79USD per barrel
· Gold +$14.80 to $1474.10 per ounce Gold prices set a another new record high for the fourth time in a week as a week US dollar boosted demand. Silver climbed above $40 an ounce to a 31 year high.
· Canadian 5 yr bond yields markets +.01bps to 2.86. The spread (based on the MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.53.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Friday, April 8, 2011
Financial Update: April 8, 2011
More than half of young adults waiting till next year to buy home...
However, their willingness to hold off is only 10% higher than the national average. And 43% still intend to buy in the next two years. So, this is no doom and gloom scenario, but it has implications for mortgage originators: What are you doing to help instill confidence in potential homebuyers so they buy sooner rather than later?
· TSX -94.88 to 14,107.77 as energy and mining stocks failed to respond to higher oil and metals prices while traders dealt with more uncertainty after another 7.4 earthquake struck Japan . But the index moved off session lows after a tsunami warning for a coastal area already ravaged by last month’s tsunami was cancelled.
· DOW -17.26 to 12,409.49
· Dollar +.21c to 104.33c USD as investors also took in a quarter point interest rate hike by the European Central Bank.
· Oil +$1.47 to $110.30USD per barrel a new two-and-a-half year high. But with oil prices up almost 30 per cent since February amid conflict in Libya, a weakening U.S. dollar and China’s fourth interest rate hike since October, energy stocks were backing off as analysts expect crude prices to ease somewhat.
· Gold +$.80 to $1459.30 per ounce Gold prices rose to another new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugal’s long term credit rating.
· Canadian 5 yr bond yields markets +.01bps to 2.85. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.54.
(courtesy of Barb Morgan, DBD Ontario Southwest)
However, their willingness to hold off is only 10% higher than the national average. And 43% still intend to buy in the next two years. So, this is no doom and gloom scenario, but it has implications for mortgage originators: What are you doing to help instill confidence in potential homebuyers so they buy sooner rather than later?
· TSX -94.88 to 14,107.77 as energy and mining stocks failed to respond to higher oil and metals prices while traders dealt with more uncertainty after another 7.4 earthquake struck Japan . But the index moved off session lows after a tsunami warning for a coastal area already ravaged by last month’s tsunami was cancelled.
· DOW -17.26 to 12,409.49
· Dollar +.21c to 104.33c USD as investors also took in a quarter point interest rate hike by the European Central Bank.
· Oil +$1.47 to $110.30USD per barrel a new two-and-a-half year high. But with oil prices up almost 30 per cent since February amid conflict in Libya, a weakening U.S. dollar and China’s fourth interest rate hike since October, energy stocks were backing off as analysts expect crude prices to ease somewhat.
· Gold +$.80 to $1459.30 per ounce Gold prices rose to another new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugal’s long term credit rating.
· Canadian 5 yr bond yields markets +.01bps to 2.85. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.54.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Thursday, April 7, 2011
Financial Update: April 7, 2011
Why we might see a rate hike sooner rather than later...
The economy is growing much faster than the bank expected
Old-time wisdom for a new world...
"To compete in the new economy we are entering, you need to treat your customers like your great-grandfather did, and test like a scientist."
• TSX -67.88 to 14,202.65 as gold stocks failed to respond to bullion prices moving further into record territory while energy stocks backed off as crude approached the US$109 level.
• DOW +32.85 to 12,426.75 The European debt crisis was sharply in focus after Portugal’s prime minister said his country will ask for a bailout due to its high debts and difficulty raising money on international markets.
• Dollar +.37c to 104.12c USD rockets to a 3 ½ year high due to record prices hit with gold and copper. The U.S. dollar also weakened against the euro a day before the European Central Bank is expected to make its first rate hike in nearly three years to deal with inflation.
• Oil +$.49 to $108.83USD per barrel
• Gold +$6.00 to $1458.50 per ounce Gold prices rose to another new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugals long term credit rating.
• Canadian 5 yr bond yields markets +.04bps to 2.84. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.55.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
The economy is growing much faster than the bank expected
Old-time wisdom for a new world...
"To compete in the new economy we are entering, you need to treat your customers like your great-grandfather did, and test like a scientist."
• TSX -67.88 to 14,202.65 as gold stocks failed to respond to bullion prices moving further into record territory while energy stocks backed off as crude approached the US$109 level.
• DOW +32.85 to 12,426.75 The European debt crisis was sharply in focus after Portugal’s prime minister said his country will ask for a bailout due to its high debts and difficulty raising money on international markets.
• Dollar +.37c to 104.12c USD rockets to a 3 ½ year high due to record prices hit with gold and copper. The U.S. dollar also weakened against the euro a day before the European Central Bank is expected to make its first rate hike in nearly three years to deal with inflation.
• Oil +$.49 to $108.83USD per barrel
• Gold +$6.00 to $1458.50 per ounce Gold prices rose to another new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugals long term credit rating.
• Canadian 5 yr bond yields markets +.04bps to 2.84. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room at the top of the comfort zone at 1.55.
(Courtesy of Barb Morgan, DBD Ontario Southwest)
Wednesday, April 6, 2011
Financial Update: April 6, 2011
Canada to lead G7 in growth and the recovery is becoming self-sustained...
* TSX +52.18 to 14,270.53 As record high bullion prices lifted gold stocks and other mining stocks shook off early losses amid China's latest move to slow its economy to deal with inflation.
* DOW -6.13 to 12,393.90 New York markets were weak as a key gauge of the U.S. service sector showed a slower pace of expansion in March.
* Dollar +.39c to 103.75c USD.
* Oil -$.13 to $108.34USD per barrel After China said it was raising interest rates again for the 4th time since October to help control inflation. Declining gasoline demand and a rare oil shipment from Libya also pulled crude lower later in the day. Higher interest rates could slow China's economy and shrink its appetite for oil.
* Gold +$19.50 to $1452.50 per ounce Gold prices rose to a new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugals long term credit rating.
* Canadian 5 yr bond yields markets +.04bps to 2.80. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room above the comfort zone at 1.59.
(courtesy of Barb Morgan, DBD Ontario Southwest)
* TSX +52.18 to 14,270.53 As record high bullion prices lifted gold stocks and other mining stocks shook off early losses amid China's latest move to slow its economy to deal with inflation.
* DOW -6.13 to 12,393.90 New York markets were weak as a key gauge of the U.S. service sector showed a slower pace of expansion in March.
* Dollar +.39c to 103.75c USD.
* Oil -$.13 to $108.34USD per barrel After China said it was raising interest rates again for the 4th time since October to help control inflation. Declining gasoline demand and a rare oil shipment from Libya also pulled crude lower later in the day. Higher interest rates could slow China's economy and shrink its appetite for oil.
* Gold +$19.50 to $1452.50 per ounce Gold prices rose to a new record high as investors looked for safe havens amid worries about risks ranging from political turmoil in Libya and the nuclear crisis in Japan to the threat of sovereign debt default in Europe as Moody’s downgraded Portugals long term credit rating.
* Canadian 5 yr bond yields markets +.04bps to 2.80. The spread (based on the NEW MERIX 5 yr rate published rate of 4.39%) now has lots of room above the comfort zone at 1.59.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Tuesday, April 5, 2011
Financial Update: April 5, 2011
Canadian firms still bullish, but fret about high oil, food prices and loonie...
The central bank said its new spring business outlook survey shows firms remain bullish about the future, but less so than three months ago.
Canada's big banks raising residential mortgage rates ahead of busy period...
· TSX +88.20 to 14,218.35 Closed higher on major deal-making in the mining sector while energy stocks advanced as crude oil rose to a fresh two-and-a-half year high. China’s Minmetals Resources Ltd. is launching a C$6.3 billion unsolicited bid for Equinox Minerals, which is dual-listed on the Toronto and Australian exchanges.
· DOW +23.21 to 12,400.03
· Dollar -.33c to 103.36c USD The potential effect of the Equinox deal on the loonie could be difficult to decipher however it does appear to be a Canadian dollar cash deal which could push the dollar higher. A foreign buyer acquiring a Canadian company will need Canadian currency to close the deal, boosting demand for the loonie on financial markets.
· Oil +$.53 to $108.47USD per barrel The price of oil jumped to a fresh 30-month high, as fighting in Libya and unrest in the Middle East continued to raise doubts about future supplies.
· Gold -$4.10 to $1433 per ounce
· Canadian 5 yr bond yields markets -.02bps to 2.76. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is far below the comfort zone at 1.28. These spreads have already caused 5 lenders to increase 5yr fixed rates by .35bps- 40bps, so get any fixed applications in early today as we expect to see movement in our rates also.
(courtesy of Barb Morgan, DBD Ontario Southwest)
The central bank said its new spring business outlook survey shows firms remain bullish about the future, but less so than three months ago.
Canada's big banks raising residential mortgage rates ahead of busy period...
· TSX +88.20 to 14,218.35 Closed higher on major deal-making in the mining sector while energy stocks advanced as crude oil rose to a fresh two-and-a-half year high. China’s Minmetals Resources Ltd. is launching a C$6.3 billion unsolicited bid for Equinox Minerals, which is dual-listed on the Toronto and Australian exchanges.
· DOW +23.21 to 12,400.03
· Dollar -.33c to 103.36c USD The potential effect of the Equinox deal on the loonie could be difficult to decipher however it does appear to be a Canadian dollar cash deal which could push the dollar higher. A foreign buyer acquiring a Canadian company will need Canadian currency to close the deal, boosting demand for the loonie on financial markets.
· Oil +$.53 to $108.47USD per barrel The price of oil jumped to a fresh 30-month high, as fighting in Libya and unrest in the Middle East continued to raise doubts about future supplies.
· Gold -$4.10 to $1433 per ounce
· Canadian 5 yr bond yields markets -.02bps to 2.76. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is far below the comfort zone at 1.28. These spreads have already caused 5 lenders to increase 5yr fixed rates by .35bps- 40bps, so get any fixed applications in early today as we expect to see movement in our rates also.
(courtesy of Barb Morgan, DBD Ontario Southwest)
Subscribe to:
Posts (Atom)