It seems US has reached a compromise on the debt ceiling and another crisis avoided. President Obama and the Republicans have come to an agreement. read more here.
We already knew the US was on shaky economic ground… no one really knew how a US debt default would affect Canada or the rest of the world. It certainly wouldn’t be a good thing.
But before we can breathe a sigh of relief, Canada’s Gross Domestic Product (GDP) fell by 0.3% in May. The largest single month drop since May 2009. This unexpected drop is good news for those of us with mortgages.
Interest rates are expected to remain low for this year. And a Bank of Canada rate hike is less likely in September or even October.
Enjoy the low rates.