Rate Cuts & AI Real Estate Hacks

📉 More Interest Rate Cuts are Incoming as Trade War Looms

• The Bank of Canada is expected to cut rates again tomorrow (March 12) for the seventh time, dropping from 3% to 2.75%.

• Financial markets estimate an 80% chance of a 0.25% rate cut

• Despite concerns, GDP grew 2.6% in Q4 2024, showing the economy responded well to previous rate cuts.

• Inflation is around 2%, but core inflation remains near the upper limit of the target range.

• Central bank models suggest a prolonged trade war could cut exports by 8.5%, business investment by 12%, and consumer spending by 2%.

Why This Matters: The Canadian economy has shown resilience, but businesses are scaling back due to uncertainty, with over half of export-oriented firms reducing production or laying off staff. Rising inflation from tariffs could increase construction costs, impacting development projects. Property values in high-risk markets could soften despite rate cuts if a recession hits.

💻 How AI Is Helping Criminals Hack Real Estate Transactions

• AI-driven fraud is rising, with deepfake technology used to impersonate homeowners in real estate transactions.

• AI-generated voice manipulation and spoofing tools are enabling fraudsters to bypass security measures.

• Wire fraud is increasing, with cybercriminals intercepting and rerouting closing funds through compromised email accounts.

• Mortgage fraud cases continue to grow, with organized crime groups using "straw buyers" to obtain fraudulent loans.

• Real-time identity fraud now includes AI-generated video calls, making in-person verification even more critical.

Why This Matters: The quality of counterfeit identification documents has improved significantly, making it challenging to detect fraud even during face-to-face interactions. Rising fraud risk means investors need more due diligence on tenant screening and transaction verification. _(source)

💸 Toronto’s Luxury Condos Are Booming While Others Struggle