Michelle Codron Mortgages

I hope everyone had a wonderful Family Day & Valentines Day weekend with the ones they love💕

Ps- Vienna got her first pirate pack at white spot🥹

💥BANK OF CANADA ANNOUNCEMENT💥

Today, was the second of eight, Bank of Canada Announcements for 2024. The overnight policy has remained unchanged for the 5th consecutive meeting.

This directly impacts the Prime Rate, which affects Variable rate mortgage holders. Payments will remain unchanged, even though inflation decreased to 2.9% in January - no change is better than an increase!

MANY clients cannot wait to see the decrease in Prime Rate start to occur this year. We hear you! Payment relief for current borrowers, as well as, having the qualifying rate relief for new purchasers or anyone renewing or refinancing, will be an amazing feeling for all.
Some economists are more optimistic than others, stating that a potential decrease may occur at the April Bank of Canada Announcements, while others are saying June.

What are your thoughts?!

The current Prime Rate is 7.20%.

The next Bank of Canada Meeting is in 5 weeks on April 10th 2024. I believe there could be a decrease in April but it could be wishful thinking!

If you have a purchase, renewal or refinance coming up in 2024, this is a great time to start getting prepared and go over all your options available to you! Selecting the right lender, product & term for your specific situation is crucial to your short and long term goals. I would love to chat!

Please reach out if you have any questions or comments☺️

Cheers🥂

💥October Inflation Report💥

Today's inflation report showed a continued improvement, mainly due to falling year-over-year gasoline prices. Inflation dropped to 3.1% in October, down from 3.8% in September.

The most significant contributors to inflation remain mortgage interest costs, food purchased at stores, and rent.

Economists have said:
"There is no need for the Bank to raise rates again, and they could begin to cut interest rates in the second quarter of next year.

This is promising news and should keep mortgages interest rates at bay, with hopefully no more increases! The bank of Canada policy rate is tied to the Prime rate, which affects Variable Rate mortgage holders, which seem to have peaked and hopefully they can start decreasing by spring/summer 2024. Our 5 year government bonds have been also decreasing, which puts pressure on fixed rates to start decreasing as well.

BOTTOMLINE: this is great news for current variable rate mortgage holders, clients wanting to get into the market and anyone who has upcoming mortgage renewals in 2024/2025.

The next Bank of Canada Announcement is Dec 6th 2023

Reach out if you would like to chat about how this affects you! 💁🏻‍♀️