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Wednesday, February 17, 2010

Canadian Mortgage Broker News - Mortgage market strong, housing bubble nonexistent: Carney

Canadian Mortgage Broker News - Mortgage market strong, housing bubble nonexistent: Carney

Mortgage market strong, housing bubble nonexistent: Carney


Bank of Canada governor Mark Carney said Canada is not experiencing a housing bubble and he doesn't see the need for structural changes to the country's mortgage market, according to a report in Reuters.

"The Canadian mortgage market has functioned I think exceptionally well during the course of the last decade ... we've seen the strength of the system of mortgage insurance and it's provided an important funding avenue for the banks as well," said Carney after a speech in Winnipeg on Feb. 4.

The speaking engagement also gave Carney a chance to address the current talk of a housing bubble forming in Canada due to explosive home sales and escalating prices. He said the strength in the housing market was "expected" due to where monetary policy was and said the bank is "following it closely."

"We want to caution people that rates are extraordinarily low right now, they're low for a reason ... but it's a means to an end," he said.