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Everything is playing out as expected. Fixed rates have begun to fall, slowly. But this isn’t unusual or unexpected. If you’ve followed interest rate hikes and cuts, you’ll see a familiar pattern.
Continue reading “Why fixed rates haven’t dropped that much yet”
Today, the Bank of Canada cut the Prime rate by 0.25%. Hooray! This will directly affect Variable rate mortgages and indirectly affect Fixed rate mortgages.
It has been 27 months since the Bank of Canada governor, Tiff Macklem, started hiking rates to combat inflation. The last hike was in July 2023. Since then, it’s been a guessing game to see when Macklem would act.. Finally, he cut the rates which is much needed and welcome news to all.
Continue reading “Finally!! The Bank of Canada cuts the rate. “
Some not-so-great news from the Bank of Canada yesterday: the target rate was raised yet again by 0.25%. This one wasn’t a complete surprise. Rates have been climbing for the last year to battle red hot inflation. Inflation is now at 4.4%, which is huge progress from 8.1% this time last year. But last month’s Consumer Index Report logged an unexpected 0.1% jump in inflation from the previous month.
Continue reading “The Bank of Canada Does It Again”
Some weird stuff is happening in the world of real estate. As you likely know, the Bank of Canada has steadily raised interest rates over the past year in hopes of cooling inflation. This was also supposed to cool the housing market. Conventional wisdom dictates that higher rates would result in more mortgage defaults, more housing supply, and lower home prices. Oddly enough, none of that is happening.
Continue reading “Home Prices Heat Up Despite High Interest Rates”
There’s one reason and one reason only that rates have skyrocketed by 4.25% in less than 10 months: inflation. The Bank of Canada has made it their mandate to bring inflation down to 2% – a far cry from the peak at 5.9%. Their plan is to jack up rates so that people will have less disposable income. The idea is that less disposable income will lead to less personal spending. Less personal spending will lead to lower demand for goods. Lower demand for goods will eventually lead to lower prices on those goods.
Essentially, for this plan to work, Canadians need to spend less money. It’s as simple as that. So why in the world does the Prime Minister keep giving Canadians more money to spend?
Continue reading “Free Money Will Cost Canadians”
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