Real Estate

Fed rate cuts | currently nearly 0% as of March 15

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  • Mar 29th, 2020 12:55 am
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Deal Addict
Mar 20, 2017
1210 posts
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Fed rate cuts | currently nearly 0% as of March 15

https://business.financialpost.com/news ... onavirus-2

Fed cuts rate half point over coronavirus in first emergency move since the financial crisis.

FOMC meeting was scheduled for March 17-18, but Fed decided to go ahead with rate cut right away...
Will we see another 0.5% cut on March 18th? :D
186 replies
Deal Addict
Jan 17, 2006
1920 posts
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Toronto
GalvToronto wrote: https://business.financialpost.com/news ... onavirus-2

Fed cuts rate half point over coronavirus in first emergency move since the financial crisis.

FOMC meeting was scheduled for March 17-18, but Fed decided to go ahead with rate cut right away...
Will we see another 0.5% cut on March 18th? :D
Let's see how BoC will respond.
Sr. Member
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Nov 5, 2018
656 posts
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Scarborough
I remember when I bought in 2018 and all the bears attacked me saying how rates were going to 4-6%. Ya...that didn’t age well lol
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Sr. Member
Jul 8, 2017
604 posts
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NA
CondoMan98 wrote: I remember when I bought in 2018 and all the bears attacked me saying how rates were going to 4-6%. Ya...that didn’t age well lol
Low interest rate will only widen the wealth gap between the bears and the bull, unless the average bear has 500K in stocks to keep up with this kind of money printing, which is not likely on RFD.
Sr. Member
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Nov 5, 2018
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Scarborough
Silver1234 wrote: Low interest rate will only widen the wealth gap between the bears and the bull, unless the average bear has 500K in stocks to keep up with this kind of money printing, which is not likely on RFD.
Every bear has disappeared off of these forums. It is over, the battle is won. The bulls have emerged victorious. :)
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Jul 8, 2010
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Ontario
As if dropping money out of the sky will help with health pandemic.... The fact that rates are close to negative draws a very bad picture, but hey, everyone with his.... Let's cheer up, some will get rich for time being...

It is already baked-in, rate cut by BoC on WED, probably 50bps.
Deal Addict
Dec 4, 2016
1793 posts
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Based on 5 year Government of Canada bond, 2.0% 5 year fixed mortgage rate coming soon.
Deal Addict
Jan 13, 2014
1553 posts
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Calgary
Isostar wrote: As if dropping money out of the sky will help with health pandemic.... The fact that rates are close to negative draws a very bad picture, but hey, everyone with his.... Let's cheer up, some will get rich for time being...

It is already baked-in, rate cut by BoC on WED, probably 50bps.
Buddy, if this happens, i will be Paypal-ing you beer money!
Member
Dec 21, 2010
286 posts
91 upvotes
Toronto
Hopefully 0.50% drop tomorrow, more likely 0,25%.
Jr. Member
Sep 11, 2007
176 posts
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toronto
How will it affect the R/E market?
Sr. Member
Jan 29, 2010
809 posts
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Toronto
I can't imagine how crazy the real estate will get this month. Toronto downtown condo has already gone up 15%+ since the start of the year, before this.

I was planning to buy an investment property. Now, the price doesn't seem right now... thinking if I should wait for it to fall back to earth like how 2017 houses did.
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Jun 28, 2018
151 posts
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Aurora, Ontario
BoC will NOT drop .5. It will probably drop .25. Canada is almost always more cautious than US hence we have nanny rules like stress test. In US they let the stupid act stupid and pay for their own stupidity later while the smart few get rich. That’s one of the fundamental differences between US and Canada.
Sr. Member
Jan 29, 2010
809 posts
523 upvotes
Toronto
DarekP84312 wrote: BoC will NOT drop .5. It will probably drop .25. Canada is almost always more cautious than US hence we have nanny rules like stress test. In US they let the stupid act stupid and pay for their own stupidity later while the smart few get rich. That’s one of the fundamental differences between US and Canada.
Even if this is so, the public will expect 0.5% and price that in real estate. The market is going through the roofs this year.

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