Peak Inflation

The US inflation numbers came out yesterday and it showed that inflation has started to come back from it’s high of 9.1% in June to 8.5% in July. So this has many of us hoping that we have hit peak inflation. Most of the reduction stems from gas prices coming back from their highs in June. The month over month prices of good and services were flat with a 0% change from June to July and this is after hitting a 17 year high in June.

So while this is positive news, the true indication will be where the numbers go for next month. Will this report be just a fluke or a true indication that inflation has started to reseed from it’s highs. If this is the case will bond yields come back down and bring the fixed rates with it? This has already started as rates are now about 1% off of their June highs but is there still more room for them to come back down. How will all of this effect the central banker stance on the over night interest rates?

So let’s take the good news out of the US with a grain of salt for now and see how the Canadian numbers look when they are announced next week. However the true test may be when the Bank of Canada meets on September 7th to discuss the overnight lending rate, which if you remember the last time they met in July it went up by one full percentage point.

Today I am thankful for the fact that the repair work on my office is almost complete, my girls are getting excited to start their university education next month and that the humidity has left us for the time being.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here