Mortgage Commentary February 14, 2012

The Greek parliament has finally approved sharp austerity measures clearing the way for another round of bail-out money and staving-off default. While there is wide spread, public unrest against the deep and wide-ranging cuts there are still international fears they won’t be enough to save the country.Some analysts believe the rest of the eurozone is now preparing to deal with the fall-out of an eventual Greek default and the country’s withdrawal from the Euro.

Yields here have remained stable. Canada Mortgage and Housing Corp is predicting a steady housing market here, through 2013. CMHC expects housing starts will total 190,000 units in 2012 and 193,800 units next year. Sales will amount to about 457,300 units this year 468,200 units in 2013, with the average home price reaching $368,900 in 2012 and $379,000 the next year.

Reports due out this week include U.S. retail sales for January and Canadian car sales for December; Canadian manufacturing shipments and U.S. housing starts and building permits; and Canadian and American CPI and Leading Indicators on Friday.