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Originally Posted by Shazam
A familiar refrain. Mostly wrong though.
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How is this mostly wrong? You think houses in the middle of the highest demand areas aren't less exposed to decreases?
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Originally Posted by Shazam
Bond rates are contingent on prime, not the other way around.
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I know. However, fixed mortgage rates are dependent on bond rates. I would agree that are all affected (and largely determined) by prime rates though, or at least what people think prime rates will do. When bond rates fall, interest rates can fall below prime though, for both fixed and variable rates.
So if in 2 years, people think that the BoC will start easing rates, you may see below prime fixed mortgage rates again.
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Originally Posted by Shazam
And let's keep some perspective here. The prime rate is now only 3.75%. Hardly the stuff of panic. But whoo, people suck at finances.
Regardless, it takes years to quell inflation. Years, boyos. Last time this idiocy happened it took two decades before rates normalized in Canada.
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Inflation is already playing out differently than it did in the 1970s/early 80s. Inflation already looks like it's easing off. Once again, a lot of the current inflation issues were caused by supply chain issues.