Economic Update from CAAMP 2012

Mortgage101

ü     Europe will continue to be an issue.

ü     Asia - China may do better.

ü     US - housing market is getting better and US economy overall, will get better.

ü     Governments are in debt and government revenues are below target.

ü     No more declining interest rates.

ü     European zone will not have growth.They need to make changes to their job market and get people employed.

       Unemployment is too high in Europe.

ü     Some upward pressure on rates may be50 bps; 2013 is still a year of transition.

ü     Some inflationary pressure.

ü     70% of Canadians own homes.

ü     Only 1% of households in Canada are under equity compared to 25% in US.

ü     Demographic - large group of 20-44year olds that could sustain housing market.

ü     2/3 of debt is secured debt. Unsecured debts does not represent large portion of debt.