TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
- Housing starts surpassed expectations in August, driven higher by an advance in both single and multifamily units. The uptick in new construction since spring has coincided with an improvement in underlying fundamentals.
- Household balance sheets strengthened in the second quarter, as both financial and non-financial assets increased. The household debt-to-disposable income ratio fell for a third straight quarter as income growth outpaced debt.
- Higher interest rates are taking a good bite out of household disposable incomes. However, some relief is likely in the quarters ahead as the recent fall in mortgage rates translates into lower mortgage interest payments.
- There was good news in the trade negotiations between the U.S. and China this week as the President announced a postponement of tariffs and China exempted key agricultural goods (pork and soybeans) from existing tariffs.
- The European Central Bank lowered its key policy rate further into negative territory this week and announced a plan to restart asset purchases that will continue “for as long as necessary” to bring inflation back to target.
- U.S. core inflation picked up in August and retail sales beat expectations. Even so, the Fed is likely to cut rates by 25 basis points when it meets next week, likely citing global growth and trade headwinds.