North American markets are taking a pause this morning after yesterday’s rally that pushed the S&P500 to its biggest one-day gain in four months. Positive earnings reports sparked the fire, with fuel being added later in the day after President Obama endorsed deficit cutting plan outlined by a bi-partisan group of senators. Apple reported quarterly profits after the close yesterday that were nothing short of spectacular, with net income handily topping estimates on sales that were almost $3 billion higher than forecast. It’s still very early in the quarterly earnings season, but the trend appears nicely intact with almost 90% of reports beating forecasts. The Bank of Canada released its monetary policy report this morning, and in a seeming contradiction to yesterday’s hawkish announcement they lowered their GDP growth estimates to an anaemic 1.5%. This hasn’t stopped the Loonie from continuing its climb, and although this year’s intra-day high is about a quarter cent north of where we are now, a close at current levels would be the highest close since 2007. The TSX is up 30 pts. The Dow is down 16 pts.
The Canadian dollar is up a half-cent to US$1.0547. Bond yields have nudged higher to 2.24% for the 5-year Canada and 2.94% for the ten. Gold is off $5.40 to US$1595.70/oz. Oil is up 77 cents to US$98.27/barrel.
Mortgage rates remain steady with the five year fixed terms in the 3.65% to 3.89% range and variable rates in the 2.10% to 2.50% range for qualified clients.
We continue to see a trend where lenders are really looking to cherry pick the best deals by offering great rates to these clients. However fr those with some issues with credit or income confirmation some lenders are no longer interested in looking at these deals.
If you have any questions about your Vancouver mortgage please call me at 604-961-2400.
Lawrie Thom
