Market Update: Inflation Under 3% For 1st Time In 3 Years

Some more good news coming out of the markets today that will be positively affecting your ability to purchase, sell or invest in real estate. The Fed will be making an announcement at 2PM today but we should already be happy that the inflation rate has come in below projections at 2.9%, official marking it as the first time the inflation rate has fallen below the 3% mark in 3 years. On a six-month annualized basis, it's under 2%!

Here’s the 3 most important announcements that will affect interest rates and inflation.

• Wednesday's Fed rate announcement

• Wednesday's Canadian GDP

• Friday's U.S. job numbers.

Now, let’s shift gears to the current interest rates:

Insured 5 Year fixed starts at 4.94% and 5.19% for 20% down or +
Insured 5 Year Variable starting at 6.25% and 6.60% for 20% down or +
Conventional (rentals / 1M + purchase price) starting at 5.19% fixed 5 years,

6.60% variable.
6.30% 5 Year-Variable (w/ 35% down)

1 Year fixed starting at 6.64% (Insured)
2 Year Fixed starting at 5.99% (Insured)
3 Year fixed starting at 5.14% (Insured)

UPDATE: Bank of Canada Holds Key Rate at 5%

In its most recent announcement, the Bank of Canada has maintained its key interest rate at 5%, a move that reflects its commitment to balancing economic growth and inflation control. This also marks the fourth consecutive time the BoC has decided to hold the rate.

The bank has been clear on their reasons for not already cutting the rate. “The Council is still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation,”

While we were all hoping for a cut in the key rate, there is still a silver lining to today’s announcement. Discussions of rate shifts have gone from hikes to talks of cuts. This doesn’t only signal a rate cut in the near future but also shows the general outlook and attitude of the BoC.

Here’s an encouraging statement by Tiff Macklem: “With overall demand in the economy no longer running ahead of supply, governing council’s discussion of monetary policy is shifting from whether our policy rate is restrictive enough to restore price stability to how long to stay at the current level,”

Only time will tell what comes next but I think it’s safe to say that there looks to be light at the end of the 2024 tunnel.

Not sure what your next move should be? Whether it’s buying, selling, renting or investing, talk to me first.

Market Update: Bank of Canada Holds Rate at 5%

In some very important news this week, the Bank of Canada has decided to hold their rates at 5% for a third consecutive meeting. Considering the turbulent changes we’ve witnessed in rates for the past year, this is some considerably good news.

What does this mean for current mortgage holders? Anyone who currently has a variable rate or a HELOC are well positioned now that inflation is moving in the right direction Furthermore, this could mean rate cuts at some point in 2024.

Does this mean buyers should be jumping into the market? In a word, yes. Experts are expecting 2024 to be an unpredictable year. Interest rate changes will depend on a variety of factors and can go up or down. Now that we’ve got a pause at 5%, this would be a good time to grab a property.

Worried you’ll miss possibly lower rates next year? A variable mortgage may be a good move for you to benefit from any potential rate drops.

But, don’t worry about all that. All you need to do is contact me, and I’ll make sure you’re in good hands.