Not exact matches
There were several possible catalysts suggested
for this spike in concerns about a favorable outcome of the debt ceiling negotiation, which has to be concluded ahead of the Treasury's X Date, now expected as early as October 1: some cited Steven Mnuchin's interview on CNBC, in which the Treasury Secretary said that the additional spending
needed to help Texas recover from Hurricane Harvey may reduce the amount of time Congress has to increase the federal debt
limit; another possibility was month - end
liquidity needs and relative positioning across the curve.
Brokered CDs do not
need to be held to maturity, charge no penalties
for redemption, and have
limited liquidity in a secondary market.
It should be noted that this situation isn't
for everyone and doesn't take into account personal circumstances like TFSA contribution
limit, appetite
for risk and
need for liquidity.
This
need for stability gives rise to the only substantive
liquidity limitations, which are the requirement to maintain certain balances and the
limit on the number of withdrawals.
These higher loan
limits are intended to provide lenders with much -
needed liquidity in the highest cost areas of the country, while also lowering mortgage financing costs
for borrowers located in these areas.
Recent reductions to the conforming loan
limits by the federal government are already having an impact on mortgage
liquidity according to early data from an NAR survey, which found that consumers who are now above the new lower conventional conforming loan
limit are experiencing significantly higher interest rates and the
need for substantially larger down payments.