I chose this image due to the fact it gives a very clear representation on the direct affects our economy has on mortgage rates. It ultimately does the explaining in the image.

Definitions

Inflation- The increase in price of goods and services in an economy.

Rate of economic growth- The change in value of all goods and services produced within a country, for a specific period in comparison to an earlier period.

Federal reserve monetary policy- Managing the level of short-term interest rates and influencing the availability and cost of credit in the economy. The objective of monetary policy is to preserve the value of money by keeping inflation low, stable and predictable.

The bond market- A marketplace for debt securities. It covers both government-issued and corporate-issued debt securities. It allows capital to be transferred from savers or investors to issuers who want funds for projects or other operations.

Housing market conditions- The relationship between supply and demand of homes.

I chose this image because it gives a variety of different factors that affect mortgage rates.

Most of these I will not get too into explaining, but this was just meant to introduce you to the idea and background of a mortgage to better understand mortgage rates.

I chose this video because it goes in depth on interest rates as well as, mortgage rates and our economy in an up to date description. The market is slowly leveling itself out, but I am afraid we will still have to go through these bidding wars and other problems in the up and coming months.

I chose this video because although it is dated back to June 2023, it covered some very valuable information on the market and its impact of changes in inflation and the economy . As well as, most of their inferences ended up being true.

I chose this video because it shows that market watchers inferences are very often correct. The video opened my eyes to how many people end up losing their homes due to this mess. It is quite scary to even think about a mortgage rate nowadays. I hope it opened your eyes as well!

I chose this article because it goes into great detail for understanding the Overnight Market, why they change target rates, the history of rates, and what we can expect to see in the future.

I thought it would be a great website to include, as it gives an alternate perspective on just how many other factors come into play. Specifically, when discussing the impact of changes in inflation and the economy.

I chose this article because it ultimately summarizes how the Bank of Canada refuses to change its overall outlook on this matter. Thus, leaving us with the exact same results.

I chose this article because although it is a very scary idea or concept to understand and follow; it is very real and is happening in front of our very eyes. Kronick's outlook does not look too promising for us as Canadians.

The most shocking thing I learned is that the Mortgage Delinquency Rates across Canada rose 52.3%, in just the last quarter of 2023. The most astounding was in Ontario, which rose to 135.2%. We learned throughout this course about the 50/30/20 rule. 50% on needs, 30% on wants, and 20% on savings. The 50% on needs must be met no matter what. Things such as your Mortgage Payments, Utility bills, Taxes, Groceries, and Health care. I thought borrowers were stress tested, (before acquiring a mortgage), to be able to cope with higher costs associated with higher interest rates. For example: If you get approved for $500,000 at 4.5%, would you still be approved at 8%? If this were the case how could there be so many delinquencies?

Question 2: Provide a real life example of how this topic is relevant or interesting to you.

This topic is relevant to me because I am constantly looking into the future of buying a home. Topics such as, how much am I willing to put down on a home, or how much can I afford to put down on a home? As well as, is it even worth the stress? I would want to make sure I have a very hefty down payment. I also want to make sure that I can afford for these fluctuating interest rates. Even if I was approved for a lower rate of interest, I would make sure I could afford a higher rate of interest too.

Question 3: If you could pass on your knowledge to a family member or a friend, what do you think is the most important thing to pass on?

I think the most important thing for anyone to understand is that you should always be overly prepared. Whether you have extra money set aside for any mishap, or misfortune that could possibly come your way; it is always better to be overprepared than underprepared. We should always try to live within our means. If this means we cannot live in a major city, have a brand new car, or whatever the case may be. We must recognize our own capabilities and affordability's.