I just don't see how a rate cut doesn't equal anything other than complete madness in the housing market.
A slow rate cut over years won’t do that much. The 3 and 5 yr fixed that people are stress tested against already reflect anticipated reductions in interest rates.
Ya I wonder if one wanted to get into the flipping game, now seems like the time?
If you have the capital to buy without assuming a large mortgage, I would agree. The market seems a little depressed for sure. The problem is pieces aren't exactly cheap. The Stock markets have been pretty depressed for a while too, so there may be better investments out there.
Remember that your money is likely worth 40% less than it was pre COVID. So a 40% increase is just staying level.
If you have the capital to buy without assuming a large mortgage, I would agree. The market seems a little depressed for sure. The problem is pieces aren't exactly cheap. The Stock markets have been pretty depressed for a while too, so there may be better investments out there.
Remember that your money is likely worth 40% less than it was pre COVID. So a 40% increase is just staying level.
These depressed markets you speak of... Do you mean the DOW that reached at an all-time high on Wednesday? Or the S&P, which also hit an all-time the same day?
These depressed markets you speak of... Do you mean the DOW that reached at an all-time high on Wednesday? Or the S&P, which also hit an all-time the same day?
As did the TSX this past week.
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These depressed markets you speak of... Do you mean the DOW that reached at an all-time high on Wednesday? Or the S&P, which also hit an all-time the same day?
I'll take this depressed market every day for the next decade please.
Economists believe Canada’s latest economic data will persuade the Bank of Canada to make its first rate cut of this tightening cycle in June, marking a significant divergence from the U.S. Federal Reserve...
...“Not only did we see a revision to January, which was coming into the year looking quite strong, we've missed consensus in February and it looks like we're flatlining in March. All that points to growth under one per cent for the quarter analyzed, I would think, which is well below the Bank of Canada's expectations.”
Tu Nguyen, an economist with RSM Canada, said the data shows “little steam left in the Canadian economy,” and added that a rate cut is imminent, even if the Fed holds for longer.
“It is undeniable that the growth gap between the stagnating Canadian economy and a resilient U.S. economy has widened,” she wrote in a news release. “This will lead to a divergence in the policy paths of the two central banks, with the Bank of Canada cutting in June and the Fed waiting until September"...
...“Our view is that policy divergence is closer than it has been this cycle; lower expected growth in Canada and a more rate-sensitive economy is likely to force (Bank of Canada) policy to diverge with The Fed in a meaningful way over the next few quarters,” he said in a news release...
...“Based on where inflation is going in the Fed and where the Fed's bar is for cutting, it's quite possible that we could see two or three cuts before one comes in the Fed.”
Why would the CAD drop if the market already knows that we're cutting first? The drop we've seen over the last 4 months from $0.75 to $0.73 is the market pricing in delayed cuts in the US.
Why would the CAD drop if the market already knows that we're cutting first? The drop we've seen over the last 4 months from $0.75 to $0.73 is the market pricing in delayed cuts in the US.
We shall see. Cutting first assumes the US cuts in the near term.
Well my variable rate mortgage eagerly awaits this cut. (or adjustable rate mortgage, monthly payment is not fixed and varies based on current interest rate)
Yeah, gotta think one rate cut at least is priced in already.
Great for Canadian manufacturers though!
Considering the countries productivity gains have been terrible for like 6 of 7 quarters, Canadians falsely seeming more competitive might have some bad long term consequences if they don't start doing more to fix productivity and just rely on looking cheaper.
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Canada's production is fading pretty quickly in comparison to the USA, who is seeing their economy surge.
Would be a really bad idea not to listen interest rates.
The jobs numbers today were higher though. This reduces the likelihood of a June rate cut. I feel like the markets (overall, Canada and the US) got overly excited about a rate cut and started pricing in numerous cuts. In reality though, the economy is in good shape and people are tolerating these rate cuts. The rush to cut rates just doesn’t seem to be there, although we’re closer in Canada than the US.
I'm not economist but why were people so concerned about x amount of the population having their mortgages coming up for renewal at today's higher rates? When let's say, 40% of the population has experienced the higher rates and have effectively coped, it's fair to say the same should be fine for the remaining 60% (who are going to be experiencing that higher rate), no? I don't understand how this specific part of the population is factoring into the rate cut decision.
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