Homes By Vishnu

10/15/2024

𝕮𝖆𝖓𝖆𝖉𝖆'𝖘 𝖎𝖓𝖋𝖑𝖆𝖙𝖎𝖔𝖓 𝖗𝖆𝖙𝖊 𝖉𝖗𝖔𝖕𝖕𝖊𝖉 𝖙𝖔 1.6% 𝖎𝖓 𝕾𝖊𝖕𝖙𝖊𝖒𝖇𝖊𝖗, 𝖎𝖓𝖈𝖗𝖊𝖆𝖘𝖎𝖓𝖌 𝖙𝖍𝖊 𝖑𝖎𝖐𝖊𝖑𝖎𝖍𝖔𝖔𝖉 𝖔𝖋 𝖆 50-𝖇𝖆𝖘𝖎𝖘-𝖕𝖔𝖎𝖓𝖙 𝖗𝖆𝖙𝖊 𝖈𝖚𝖙 𝖎𝖓 𝖇𝖔𝖙𝖍 𝕺𝖈𝖙𝖔𝖇𝖊𝖗 𝖆𝖓𝖉 𝕯𝖊𝖈𝖊𝖒𝖇𝖊𝖗.

𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟'𝑠 𝑖𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 ℎ𝑎𝑠 𝑓𝑎𝑙𝑙𝑒𝑛 𝑡𝑜 1.6%, 𝑎 0.4% 𝑑𝑒𝑐𝑙𝑖𝑛𝑒 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑚𝑜𝑛𝑡ℎ, 𝑚𝑎𝑟𝑘𝑖𝑛𝑔 𝑡ℎ𝑒 𝑠𝑚𝑎𝑙𝑙𝑒𝑠𝑡 𝑎𝑛𝑛𝑢𝑎𝑙 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑠𝑖𝑛𝑐𝑒 𝐹𝑒𝑏𝑟𝑢𝑎𝑟𝑦 2021. 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑠𝑡𝑠 ℎ𝑎𝑑 𝑤𝑖𝑑𝑒𝑙𝑦 𝑎𝑛𝑡𝑖𝑐𝑖𝑝𝑎𝑡𝑒𝑑 𝑎 𝑑𝑟𝑜𝑝 𝑡𝑜 1.8% 𝑓𝑟𝑜𝑚 𝐴𝑢𝑔𝑢𝑠𝑡'𝑠 2.0%. 𝑇ℎ𝑒 𝑑𝑒𝑐𝑙𝑖𝑛𝑒 𝑤𝑎𝑠 𝑙𝑎𝑟𝑔𝑒𝑙𝑦 𝑑𝑟𝑖𝑣𝑒𝑛 𝑏𝑦 𝑓𝑎𝑙𝑙𝑖𝑛𝑔 𝑔𝑎𝑠𝑜𝑙𝑖𝑛𝑒 𝑝𝑟𝑖𝑐𝑒𝑠. 𝐸𝑥𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝑔𝑎𝑠, 𝑖𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛 𝑟𝑒𝑚𝑎𝑖𝑛𝑒𝑑 𝑠𝑡𝑒𝑎𝑑𝑦 𝑎𝑡 2.2%. 𝑅𝑒𝑛𝑡 𝑝𝑟𝑖𝑐𝑒𝑠 𝑟𝑜𝑠𝑒 𝑚𝑜𝑟𝑒 𝑠𝑙𝑜𝑤𝑙𝑦 𝑏𝑢𝑡 𝑟𝑒𝑚𝑎𝑖𝑛𝑒𝑑 ℎ𝑖𝑔ℎ, 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑖𝑛𝑔 𝑏𝑦 8.2% 𝑐𝑜𝑚𝑝𝑎𝑟𝑒𝑑 𝑡𝑜 𝑡ℎ𝑒 𝑠𝑎𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 𝑙𝑎𝑠𝑡 𝑦𝑒𝑎𝑟, 𝑓𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑎𝑛 8.9% 𝑦𝑒𝑎𝑟-𝑜𝑣𝑒𝑟-𝑦𝑒𝑎𝑟 𝑟𝑖𝑠𝑒 𝑖𝑛 𝐴𝑢𝑔𝑢𝑠𝑡. 𝑀𝑜𝑟𝑡𝑔𝑎𝑔𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑐𝑜𝑠𝑡𝑠 𝑤𝑒𝑟𝑒 𝑢𝑝 16.7% 𝑖𝑛 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟, 𝑒𝑎𝑠𝑖𝑛𝑔 𝑠𝑙𝑖𝑔ℎ𝑡𝑙𝑦 𝑓𝑟𝑜𝑚 𝑎𝑛 18.8% 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝐴𝑢𝑔𝑢𝑠𝑡.

𝐹𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑡ℎ𝑒 𝑟𝑒𝑙𝑒𝑎𝑠𝑒 𝑜𝑓 𝑡ℎ𝑖𝑠 𝑖𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛 𝑑𝑎𝑡𝑎, 𝐶𝑎𝑛𝑎𝑑𝑖𝑎𝑛 𝑠𝑤𝑎𝑝 𝑚𝑎𝑟𝑘𝑒𝑡𝑠 𝑟𝑎𝑖𝑠𝑒𝑑 𝑡ℎ𝑒 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑎 𝑠𝑖𝑔𝑛𝑖𝑓𝑖𝑐𝑎𝑛𝑡 50-𝑏𝑎𝑠𝑖𝑠-𝑝𝑜𝑖𝑛𝑡 𝑟𝑎𝑡𝑒 𝑐𝑢𝑡 𝑛𝑒𝑥𝑡 𝑤𝑒𝑒𝑘 𝑡𝑜 68%, 𝑢𝑝 𝑓𝑟𝑜𝑚 𝑎𝑟𝑜𝑢𝑛𝑑 52%. 𝑀𝑎𝑟𝑘𝑒𝑡𝑠 𝑎𝑟𝑒 𝑛𝑜𝑤 𝑓𝑢𝑙𝑙𝑦 𝑝𝑟𝑖𝑐𝑖𝑛𝑔 𝑖𝑛 𝑎 𝑡𝑜𝑡𝑎𝑙 𝑜𝑓 75 𝑏𝑎𝑠𝑖𝑠 𝑝𝑜𝑖𝑛𝑡𝑠 𝑜𝑓 𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑒𝑎𝑠𝑖𝑛𝑔 𝑏𝑦 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟. 𝑆𝑜𝑚𝑒 𝑏𝑎𝑛𝑘𝑠, 𝑠𝑢𝑐ℎ 𝑎𝑠 𝑅𝐵𝐶, 𝑎𝑟𝑒 𝑝𝑟𝑒𝑑𝑖𝑐𝑡𝑖𝑛𝑔 𝑎 50-𝑏𝑎𝑠𝑖𝑠-𝑝𝑜𝑖𝑛𝑡 𝑐𝑢𝑡 𝑖𝑛 𝑂𝑐𝑡𝑜𝑏𝑒𝑟, 𝑓𝑜𝑙𝑙𝑜𝑤𝑒𝑑 𝑏𝑦 𝑎𝑛𝑜𝑡ℎ𝑒𝑟 𝑠𝑢𝑏𝑠𝑡𝑎𝑛𝑡𝑖𝑎𝑙 50-𝑏𝑎𝑠𝑖𝑠-𝑝𝑜𝑖𝑛𝑡 𝑐𝑢𝑡 𝑖𝑛 𝐷𝑒𝑐𝑒𝑚𝑏𝑒𝑟.

03/22/2024

𝕴𝖓𝖋𝖑𝖆𝖙𝖎𝖔𝖓 𝖍𝖆𝖘 𝖗𝖊𝖒𝖆𝖎𝖓𝖊𝖉 𝖇𝖊𝖑𝖔𝖜 3% 𝖋𝖔𝖗 𝖙𝖍𝖊 𝖕𝖆𝖘𝖙 𝖙𝖜𝖔 𝖒𝖔𝖓𝖙𝖍𝖘 𝖎𝖓 2024! 𝕯𝖔𝖊𝖘 𝖙𝖍𝖎𝖘 𝖎𝖓𝖉𝖎𝖈𝖆𝖙𝖊 𝖕𝖔𝖙𝖊𝖓𝖙𝖎𝖆𝖑 𝖗𝖆𝖙𝖊 𝖈𝖚𝖙𝖘 𝖎𝖓 𝕵𝖚𝖓𝖊 2024?

Canada's headline Consumer Price Index (CPI) has dropped to 2.8%, down 10 basis points (bps) from January and 30bps lower than anticipated by analysts. Moreover, the CPI Core inflation, which excludes volatile components like food and energy, also saw a decline of 20bps from both January and analyst projections.

Following the announcement, 5-Year Government Bonds experienced a 10bps decrease, settling at 3.55%. This decline suggests investor expectations of reduced inflation or long-term pressure on interest rates, possibly indicating concerns about an impending economic slowdown.

The primary factors contributing to this decrease were a slowdown in cellular and internet services, along with sluggish growth in grocery prices. Meanwhile, shelter costs continued to rise due to elevated rents and the influence of interest rates.

The likelihood of a rate cut in June has significantly increased, with money markets estimating a greater than 75% chance of a 25bps reduction. This situation underscores a growing gap between the Canadian and US economies, with Canada grappling with productivity challenges.

It's crucial to note that rate cuts could have deflationary effects on the Canadian dollar, impacting both import and export potential depending on production capacity. While the probability of rate cuts rises, careful consideration is necessary before making any decisions. Stay informed ahead of the next Bank of Canada rate announcement on April 10th, especially if you're contemplating changes to mortgage financing.

03/06/2024

The Bank of Canada maintained its key interest rate at 5%, asserting that it is premature to initiate rate cuts at this time.

Three things I observed from this ..

1) Bank of Canada keeps 5% rate due to worry about prices rising, aiming for around 3%

2) Inflation at 2.9%, higher than 2% target; core inflation stays between 3-3.5%.

3) Economy grows slowly at 1%; job market improves but hiring is slow.

03/06/2024

The Bank of Canada maintained its key interest rate at 5%, asserting that it is premature to initiate rate cuts at this time.

01/30/2024

12/21/2023

07/17/2023

02/09/2023

Should I buy now or wait ?