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Good market update, worth reading:
One could wax on about how grim the U.S. economy is, but Mark Carney put it succinctly:
“The (U.S.) housing market remains a mess, the consumer is weak, and government actions can be expected to reduce growth…The U.S. economy is close to stall speed…”
That sort of thing puts Canada in a quandary. When the American economy is in the toilet, the Canadian economy is usually on the rim, ready to fall in.
The Fed itself admits that the U.S. is facing "significant downside risks” and 3 out of 4 Canadian exports go to the States.
The mortgage-relevance here pertains to how America’s woes affect Canadian interest rates. To answer that, let’s first have a look at the historical policy rate differences between the two countries…
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