Real Estate Talks

Here we go. One more rate hike for Fed Reserve in 2017. Three rate hikes in 2018.

More important, is the unwinding of QA...

"The Fed’s New Dot Plot"

https://www.bloomberg.com/graphics/fomc-dot-plot/

"Fed won't stop cutting back on stimulus unless economy hits another big downturn, Yellen says"

https://www.cnbc.com/2017/09/20/the-fed ... -says.html

Here's something alarming...

"The Fed's about to try something that almost always has ended in recession"

https://www.cnbc.com/2017/08/02/fed-bal ... ssion.html

"Fed economist: 'No evidence that QE works' as central bank starts unwinding program

... There's little question that the program, known as quantitative easing or "money printing," boosted the stock market. The three iterations of QE between November 2008 and October 2014 each saw big boosts to the market, with a cumulative S&P 500 gain from beginning to end, including the various down periods between each leg, of about 140 percent.

The economic impacts, though, are less clear.

For most of the period, GDP struggled to gain more than 2 percent. Wealth disparity grew, income gains were hard to come by and the Fed continually came up short on its inflation goal..."

https://www.cnbc.com/2017/09/19/fed-eco ... tarts.html

Here's something alarming...

"The Fed's about to try something that almost always has ended in recession"

https://www.cnbc.com/2017/08/02/fed-bal ... ssion.html

"Fed economist: 'No evidence that QE works' as central bank starts unwinding program

... There's little question that the program, known as quantitative easing or "money printing," boosted the stock market. The three iterations of QE between November 2008 and October 2014 each saw big boosts to the market, with a cumulative S&P 500 gain from beginning to end, including the various down periods between each leg, of about 140 percent.

The economic impacts, though, are less clear.

For most of the period, GDP struggled to gain more than 2 percent. Wealth disparity grew, income gains were hard to come by and the Fed continually came up short on its inflation goal..."

https://www.cnbc.com/2017/09/19/fed-eco ... tarts.html

You should have made it clear that this is the US federal bank

Here's something alarming...

"The Fed's about to try something that almost always has ended in recession"

https://www.cnbc.com/2017/08/02/fed-bal ... ssion.html

"Fed economist: 'No evidence that QE works' as central bank starts unwinding program

... There's little question that the program, known as quantitative easing or "money printing," boosted the stock market. The three iterations of QE between November 2008 and October 2014 each saw big boosts to the market, with a cumulative S&P 500 gain from beginning to end, including the various down periods between each leg, of about 140 percent.

The economic impacts, though, are less clear.

For most of the period, GDP struggled to gain more than 2 percent. Wealth disparity grew, income gains were hard to come by and the Fed continually came up short on its inflation goal..."

https://www.cnbc.com/2017/09/19/fed-eco ... tarts.html

You should have made it clear that this is the US federal bank

Why?
It's pretty obvious and I think everyone is capable of reading.

Of course, why make this clear when your goal is to be alarmist. Let's just borrow and obfuscate any negative news we can find

Of course, why make this clear when your goal is to be alarmist. Let's just borrow and obfuscate any negative news we can find

Are you using the word 'obfuscate' correctly? Strange coming from a cherry picker like you?

Of course, why make this clear when your goal is to be alarmist. Let's just borrow and obfuscate any negative news we can find

It is clear to anybody that can read.

But hey - you can read minds (since you know what someone’s goal is) yet want someone to be clear for those that can actually read words.

The first post and article of this thread are in reference to Canada. Start another thread if you want to talk about US concerns - some of us don't give a shit about what happens in the US.

Right! What happens in the States will never affect Canada because it is in a universe of its own.

BTW, where were you during the financial crisis of 2008-9?

Yes, Canada banks fund their ten year mortgages from domestic deposits. Right!

The first post and article of this thread are in reference to Canada. Start another thread if you want to talk about US concerns - some of us don't give a shit about what happens in the US.

Just open your eyes - everything is right in front of you.  

"It's begun: Fed's unwinding of its epic balance sheet officially showing up in the data

... It's just the leading edge of more to come as the Fed gradually ramps up its effort to "normalize" its balance sheet. The Fed hasn't explicitly said what level it's aiming for, only that it will ramp up its sales of Treasurys and mortgage-backed securities to a point where it eventually is reducing them at a clip of $50 billion a month.

The decline in mortgage-backed securities, which is already taking place, should begin showing up in the data next month."

https://www.cnbc.com/2017/11/03/its-beg ... -data.html

Rates are up. Prime is now 3.45% (highest since 2009). Didn't someone say that mortgages will never reach 5%?

Fact is that they are currently stress testing at the 5% mark.

“Canadian Banks Hike Mortgage Rates to Start 2018


… For example, despite getting a variable rate mortgage for say 2.5%, the borrower will have to undergo a stress test at the overnight rate of 5.14%. Again, this typically reduces borrowing power by about 20%...”

http://vancitycondoguide.com/canadian-banks-hike-rates/

Rates are up. Prime is now 3.45% (highest since 2009). Didn't someone say that mortgages will never reach 5%?

Fact is that they are currently stress testing at the 5% mark.

“Canadian Banks Hike Mortgage Rates to Start 2018


… For example, despite getting a variable rate mortgage for say 2.5%, the borrower will have to undergo a stress test at the overnight rate of 5.14%. Again, this typically reduces borrowing power by about 20%...”

http://vancitycondoguide.com/canadian-banks-hike-rates/

Yawn.
Mortgage rates are now at what I got my first mortgage for. It's hardly considered high, yet here come the alarm bells.
Another .75 mortgage increase and it might knock some value off of these sales

I know - because the ONLY thing anybody cares about is where rates are in relation to where they were when you bought.

Mortgage rates are now at what I got my first mortgage for.

For probably half of your current home price.