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jimtan
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Joined: Tue Jul 31, 2007 10:59 pm

Are interest rates finally going to rise?

Fri Jun 09, 2017 7:30 am

As you all know, asset values have been over-inflated because of zero (or negative) real interest rates. And, $14T worth of quantitative easing.

Is it time for Canada to raise interest rates. Property and construction are at a high level of activity. Finally, manufacturing is back to normal levels. Only natural resources are under performing. But, that's a relatively small part of the economy.

"Canada Finally Adds Wage Gains to Stellar Jobs Performance"


https://www.bloomberg.com/news/articles ... -takeaways
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jimtan
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Posts: 5441
Joined: Tue Jul 31, 2007 10:59 pm

Re: Are interest rates finally going to rise?

Mon Jun 12, 2017 11:43 am

Ooops! How timely  :!:

Next move is up, Are you badly over-extended like the bull trolls?

"Bank of Canada Rate Hike Signal Sends Loonie Higher

...   In a speech Monday, Senior Deputy Governor Carolyn Wilkins highlighted how the nation’s recovery is broadening across regions and sectors, giving policy makers “reason to be encouraged.” She downplayed worries about Toronto’s housing market and said policy makers need to keep their eye on the future evolution of growth, not only current economic conditions.

“As growth continues and, ideally, broadens further, Governing Council will be assessing whether all of the considerable monetary policy stimulus presently in place is still required,” Wilkins said in Winnipeg, Manitoba. “At present, there is significant monetary policy stimulus in the system.”

Wilkins said policy makers will be focusing on the data and talking to “many people” ahead of the next interest-rate decision on July 12..."

https://www.bloomberg.com/news/articles ... lkins-says
 
reallyreal2
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Posts: 687
Joined: Fri Jun 03, 2016 11:30 am

Re: Are interest rates finally going to rise?

Mon Jun 12, 2017 12:07 pm

jimtan wrote:
Ooops! How timely  :!:

Next move is up, Are you badly over-extended like the bull trolls?

"Bank of Canada Rate Hike Signal Sends Loonie Higher

...   In a speech Monday, Senior Deputy Governor Carolyn Wilkins highlighted how the nation’s recovery is broadening across regions and sectors, giving policy makers “reason to be encouraged.” She downplayed worries about Toronto’s housing market and said policy makers need to keep their eye on the future evolution of growth, not only current economic conditions.

“As growth continues and, ideally, broadens further, Governing Council will be assessing whether all of the considerable monetary policy stimulus presently in place is still required,” Wilkins said in Winnipeg, Manitoba. “At present, there is significant monetary policy stimulus in the system.”

Wilkins said policy makers will be focusing on the data and talking to “many people” ahead of the next interest-rate decision on July 12..."

https://www.bloomberg.com/news/articles ... lkins-says


Not sure what interest rates have to do with the Vancouver housing market. Voodoo economics.
 
tdma800
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Joined: Wed Jan 23, 2008 9:12 am

Re: Are interest rates finally going to rise?

Mon Jun 12, 2017 12:13 pm

foreign media
 
eyesthebye2
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 9:11 am

Don't hold your breath.
Every time the BOC raises rates .5 it knocks the stuffing out of the economy.
At present they're jawboning
 
reallyreal2
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 11:10 am

eyesthebye2 wrote:
Don't hold your breath.
Every time the BOC raises rates .5 it knocks the stuffing out of the economy.
At present they're jawboning

A lot of people better hope so.
These rates can't stay here forever.  Eventually they have to increase and those that get caught in the cross-fire, oh well.  
 
tdma800
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 2:03 pm

Rates can stay and don't have to increase. People can lock in any time they want.
 
tiga
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 2:03 pm

I'm kind of doubtful that the Vancouver RE market is economy driven. The average wage can't afford anything. Been to a few open houses. So many young people with parents (help?).  Even non-asian.
 
tdma800
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Joined: Wed Jan 23, 2008 9:12 am

Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 2:06 pm

Income doesnt necessarily mean that much unless someone is going for a high ratio insured mortgage.
 
jimtan
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 3:05 pm

eyesthebye2 wrote:
Don't hold your breath.
Every time the BOC raises rates .5 it knocks the stuffing out of the economy.
At present they're jawboning

That's a typical exaggeration from ETB. The BoC raises rates as the economy advances. Similarly, it drops rates as the economy falters. Raising rates by 0,5% in 2017 won't tank the economy.
The uncertainty is what happens in 2018.  :!:
 
tdma800
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 3:09 pm

eyesthebye2 wrote:
Don't hold your breath.
Every time the BOC raises rates .5 it knocks the stuffing out of the economy.
At present they're jawboning

Exactly. Its well measured and reasonable. Bringing up interest this year could cause trouble, and yet next year is quite certain.
 
eyesthebye2
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 5:04 pm

tiga wrote:
I'm kind of doubtful that the Vancouver RE market is economy driven. The average wage can't afford anything. Been to a few open houses. So many young people with parents (help?).  Even non-asian.


Vancouver market is driven by wealth, not incomes. Big difference. Raising rates will put locals on the sidelines while foreigners continue to buy. The opposite of what they want (so they say).
 
jimtan
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Topic Author
Posts: 5441
Joined: Tue Jul 31, 2007 10:59 pm

Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 6:47 pm

eyesthebye2 wrote:
tiga wrote:
I'm kind of doubtful that the Vancouver RE market is economy driven. The average wage can't afford anything. Been to a few open houses. So many young people with parents (help?).  Even non-asian.


Vancouver market is driven by wealth, not incomes. Big difference. Raising rates will put locals on the sidelines while foreigners continue to buy. The opposite of what they want (so they say).

I'm sorry my dear. The mass majority of sales are bought by locals (wage slaves). I see no evidence after the imposition of the foreigners tax of foreign buying. If the foreigners are not buying in West Vancouver and Vancouver West, then they won't be buying in the rest of metro. Yes?  :?:
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yzfr1
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Posts: 275
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Re: Are interest rates finally going to rise?

Tue Jun 13, 2017 8:03 pm

jimtan wrote:
eyesthebye2 wrote:
tiga wrote:
I'm kind of doubtful that the Vancouver RE market is economy driven. The average wage can't afford anything. Been to a few open houses. So many young people with parents (help?).  Even non-asian.


Vancouver market is driven by wealth, not incomes. Big difference. Raising rates will put locals on the sidelines while foreigners continue to buy. The opposite of what they want (so they say).

I'm sorry my dear. The mass majority of sales are bought by locals (wage slaves). I see no evidence after the imposition of the foreigners tax of foreign buying. If the foreigners are not buying in West Vancouver and Vancouver West, then they won't be buying in the rest of metro. Yes?  :?:



Take a minute to think about what you posted. The graph is of Vancouver west, the average sale price was 3 million + . Again using some common sense, 1 million down payment and 2 million mortage? So a wage slave can make $10,000 monthly mortage payments?

ETB is right, no one is buying million dollar homes on wages. Its wealth from parents or some sort of inheritance.

Foreigners have stoped buying, but Canadians of foreign birth continue to buy. Its not just foreign Chinese buying, Chinese Canadian citizens with $ are buying.
 
jimtan
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Topic Author
Posts: 5441
Joined: Tue Jul 31, 2007 10:59 pm

Re: Are interest rates finally going to rise?

Wed Jun 14, 2017 5:29 am

I'm sorry. You know what happens when you drop into somebodies' conservation; without reading the text carefully?

You fall flat on your face.  :roll:
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