Hello, mortgage enthusiasts! We're diving into some fresh insights from a September 2, 2023 article in CanadianMortgageTrends magazine. 📰

📉 The Lowdown: Canada's economic engine has hit a rough patch, sending ripples through the financial world. 🌊 Latest statistics reveal that in the second quarter, the real GDP took a tumble by 0.2%, far from the expected 1.2% rise. Whoa! 📉

What's more surprising is that this slowdown falls below the Bank of Canada's prediction of 1.5% growth for both Q2 and Q3. 🏦 Douglas Porter, BMO's chief economist, put it bluntly: "It looks like Canada is already having a bit of a bumpy landing." 🛬

💼 What Does It Mean: The chances of another Bank of Canada rate hike? Well, they've dwindled faster than ice cream on a hot summer day, now down to just 15%. 📉

Most economists are on the same page, saying that today's GDP shocker will likely halt any additional rate hikes this year. 🚫💰

🧐 The Nitty-Gritty: And what about housing? Well, it's not in the best shape either. Housing investment took a hit, down 2.1% quarter-over-quarter, and new construction plummeted a whopping 8.2%. 🏡

The culprit here? High interest rates seem to be the buzzkill, putting a damper on all things housing-related. 💸

But here's a silver lining: household disposable income went up by 2.6% in the quarter. Employee compensation saw a 2.2% boost, and non-farm self-employment income showed growth at 3.1%. 💰

🤓 Expert Insights: RBC's Nathan Janzen pointed out that inflation is still hanging around, but today's data suggests that the past rate hikes are doing their job in cooling down the economy. 🌡️

James Orlando from TD Economics agrees, saying this "cooling off" is just what the Bank of Canada has been waiting for. They're likely to stay on the sidelines for the rest of the year. 🏦❄️

🏠 Housing Woes: Housing didn't escape unscathed either, as new construction activity declined in every province and territory except for Nova Scotia. Renovation activity also took a 4.3% hit. 🏗️🔧

📈 Income Boost: On the brighter side, household disposable income got a 2.6% boost, thanks to rising employee compensation and non-farm self-employment income. 💼💰

🔚 The Bottom Line: Canada's economy is facing some headwinds, and the Bank of Canada might be hitting the pause button on those interest rate hikes. Stay tuned as we navigate these financial waters! 🌊🇨🇦

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