Functioning Mortgage Market, Carney Says

February 5, 2010

Mark Carney by World Economic Forum

Canadian economy is getting better and might well fully recover in 2010, Mark Carney, the governor of the Bank of Canada has declared yesterday (Thursday) in Winnipeg. He also believes that the current housing market strength should not actually be characterized as a housing bubble and that a structural change in the mortgage market is not really necessary.

“The Canadian mortgage market has functioned, I think, exceptionally well during the course of the last decade.” he said. As for his expectations for 2010, Carney said that “current strength in housing demand and consumer spending will provide important impetus this year.”

Also, the Bank of Canada is further going to be concerned about the pace of household borrowing, and thus help Canadians avoid risky loans, according to Carney’s words. I feel like the representatives of the Bank of Canada are doing a pretty good job and have warned us so many times already that people must have this fixed in their mind already.