A few weekends ago, my family and I drove over to Lansing, Michigan to watch the Michigan State Spartans women’s Soccer team, take on in-state rivals University of Michigan.
Our two girls have really taken to soccer lately, and one of my wife’s former students plays for the Spartans.
Admittedly, I don’t really follow Division 1 Women’s soccer, so I really didn’t know what to expect.
I certainly didn’t expect 5,000 plus fans, a very rowdy student section, and some of the most exciting soccer I’ve ever watched live.
Michigan State has a beautiful campus, and the soccer stadium was top notch. True story… I had to ask somebody if the grass pitch was grass or turf… that’s how pristine it was!
Overall, it was a great experience. And most importantly, the girls loved it.
I think they were more intrigued by the rowdy student section than they were by the game, but that’s okay.
All that matters is that their first college sports experience was without a doubt, a positive one.
Maybe too positive… both of them said that they want to go to MSU for school when they get older.
I smiled and nodded, but inside I could feel my blood pressure rise as I thought about what that would cost… lol.
Fortunately, my kids are young, so it’s not something I have to worry about anytime soon.
I often wonder if University will even still be something to aspire for, by the time my kids are at that age.
The world is changing fast… with the coming onslaught of Artificial Intelligence agents what do careers and incomes even look like in 10 and 20 years.
I recent study where AI agents were out scoring human doctors on accuracy of different diagnosis. Wild.
Speaking of Artificial Intelligence… why is it that we still have to guess when, and by how much interest rates are going to drop?
Is there not some sort of predictive AI tool out there that can just tell us what’s going to happen??
I’m sure there will be at some point!
And if it was out right now, I’m pretty sure it would be predicting further and steeper rate cuts.
That’s because CPI numbers were just released for September.
Canada’s CPI rate fell to 1.6% in September, down from 2% in August.
This opens the door for the Bank of Canada to cut rates again on October 23rd.
But it might also open the door for what some call a “jumbo cut,” cutting by .50 points or more.
This would help with carrying costs for mortgages and free up more cash flow for investors.
On a $600,000 mortgage, a .50 rate cut would save you about $180 a month.
A .25 rate cut would save you about $90 a month.
Either way, it means more money in your pocket.
And many economists anticipate rate cuts to continue into next year.
And that means a simple decision on Mortgage Rates: GO VARIABLE!
In a little over 8 weeks we could have 75 BPS of Bank of Canada cuts = 3.5% BoC Rate & Variable Rates all in the 4% range.
And more than likely, the rate cuts are not stopping at 3.5%!
So, take Variable, as hard as that is for some people to stomach.
For people who just cannot handle variable, maybe take 1 year.
But if you have the financial flexibility to live with higher payments today, for lower interest levels in the Spring, and you have the flexibility to lock-in at no cost to a 5-year fixed rate with the same Lender — then just go variable.
That’s all for now.
Until next time,
Vince
