tag:blogger.com,1999:blog-3041775447431849783.post-59605662884682654302008-03-19T16:36:00.000-07:002008-03-20T06:26:38.565-07:00The U.S Federal Reserve Board reduced the federal funds rate down to 2.25% on Tuesday March 18. The 75 basis points reduction in the funds rate was designed to lower borrowing costs and boost spending by consumers and businesses and thus increase economic activity. The U.S economic growth slowed to a near standstill in the past three months due to credit crunch, a prolonged housing slump, rising unemployment and surging energy prices.<br /><br />Bank of Canada may need to cut rates more aggressively in the weeks ahead, even ahead of its next scheduled meeting on April 22. "Canada's economy is much sounder and financial markets are in stronger shape than the U.S, so Bank of Canada don't have the same urgency to cut rates because of the strong Canadian dollar," said BMO deputy chief economist Douglas Porter.<br /><br /><span style="FONT-WEIGHT: bold">Mortgage trends: </span>If you are planning to buy in the next two years, a variable-rate mortgage would offer greater savings compared to closed mortgage. <span style="font-family:georgia;font-size:100%;">Studies have shown that <a href="http://www.mortgagealliance.com/sylvialim/default_Agent.asp?ContentTypeID=&amp;PageID=10%22%20target=%22_new%22">variable open mortgage</a> offers the potential for homeowners to save thousands of dollars in interest costs over the life of the mortgage. </span><span style="font-size:100%;"><br /></span><br /><a href="http://www.thestar.com/article/347272">http://www.thestar.com/article/347272</a>Sylvia Limnoreply@blogger.com