Homeowners grapple with impeding finances: Survey

A new survey conducted by Leger for BNN Bloomberg and RATESDOTCA finds that nearly 40 per cent of Canadian homeowners are concerned about their finances, while less than half said they could afford more than $200 in increased monthly costs. With nearly two-thirds of respondents believing they’re in good financial shape, low unemployment rates and rising home prices may be giving Canadians a confidence boost on their finances. The survey asked 1,513 Canadians about their finances as interest rates stack higher and inflation hits a thirty-year record.
 

More alternative lenders securing mortgages

Brokers say that more Canadian homebuyers are considering private lenders or credit unions to secure mortgages as rates rise, especially in provinces and territories where fixed mortgages have crept to about four per cent in recent months, the Canadian Press reports. Credit unions and private lenders are often able to offer more competitive rates than traditional lenders, but only account for roughly six per cent of the Canadian mortgage market. One expert says there’s increasing interest in private lenders from Canadians who aren’t qualifying for traditional sources like banks.

Yet again, mutual fund investors sell low

Last month, Canadian investors yanked nearly $5 billion of their investments from mutual funds. This is according to data from the Investment Funds Institute of Canada (IFIC), who said mutual funds are facing redemptions for the first time in a year and a half. BNN Bloomberg’s Personal Finance Columnist Dale Jackson writes that concerns over inflation and rising interest rates have devalued major equity markets.

The Fed’s aggressive rate hikes expected to continue

Minutes from the most recent Federal Reserve meeting showed Fed officials agreed to raise interest rates in half-point steps at their next two meetings, continuing a cycle of aggressive moves intended to combat inflation, Bloomberg News reported. Concerns about how much the Fed will raise rates by has been met with volatility in financial markets and sustained fears of a recession, although some investors who digested the less-hawkish-than-expected tone of the report may have breathed a sigh of relief.

Drop in car sales offset consumer spending in latest retail sales release

Retail sales remained stagnant in March as a slump in new car sales offset healthy consumer spending gains elsewhere, according to Statistics Canada. Total retail sales in Canada hit $60.1 billion in March, virtually unchanged from the month before. Stripping out auto sales and gas stations shows retail sales rose by 1.5 per cent in March from the prior month.

TIP JAR:

5.2% 

That’s how much annual U.S. earnings growth economists expect to be reported in May. That’s slightly down from the 5.5 per cent growth found in April. Bloomberg News reports those figures are among the highest dating back to 2007.