Asia Stocks to Track US Rebound on Profit Optimism: Markets Wrap
European stocks rose for a second day after strong earnings from some of the region’s biggest companies, while positive economic data helped boost sentiment.
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European stocks rose for a second day after strong earnings from some of the region’s biggest companies, while positive economic data helped boost sentiment.
Taylor Wimpey Plc is failing to see lower mortgage rates translate into higher levels of home sales and is maintaining its forecast for fewer deals in 2024.
Chinese mainland investors increased their portion of total turnover of Hong Kong stocks to a record daily average in April, with the latest measures to bolster the city’s position potentially boosting their purchases.
Zhao Xiaowei did what would have been unthinkable just a few years ago: He quit his Beijing barista job and returned to his northeastern rust-belt hometown for a better future.
South Korea is emerging as a closely watched weak link in the $63 trillion world of shadow banking.
Dec 29, 2016
BNN Bloomberg
,New mortgage rules will be good for Canada’s big banks but will make mortgages more costly in 2017, says Rob McLister, founder of RateSpy.com.
“If you compare summer 2016 to summer 2017 you are going to see a half-point bump — maybe even a three-quarter percentage point bump in interest rates just because of what they are doing in Ottawa,” he told BNN in an interview.
In an effort to cool hot-housing markets in Toronto and Vancouver the federal government brought in a series of new mortgage rules. Portfolio-insured mortgages must now meet eligibility criteria that previously only applied to highly-leveraged insured mortgages, including a maximum amortization length of 25 years, a maximum purchase price of less than $1 million and minimum credit scores.
The new mortgages must also be stress-tested at a much higher interest rate to ensure the borrower can afford to pay the loan.
Those rules along with the potential cross-border fallout of U.S. stimulus coming from U.S. President-elect Donald Trump will likely push up mortgage costs in the coming year, says McLister.
The new rules are also making it difficult for many non-bank lenders to compete in the mortgage market, says McLister. Alternative lenders have been the source of some of the cheapest mortgages on the market and have seriously undercut many mainstream banks.
Several alternative lenders have already suspended operations in the wake of the new rules, he says. “It’s a great time to be a bank,” says McLister. “These mortgage finance companies can’t compete because of all these regulation changes — they can’t compete to the same degree. That’s pushing up rates in 2017.”