GOLDMAN FORECAST US FED WILL START RATE CUTS 2ND QUARTER 2024
NEW YORK – Goldman Sachs Group economists anticipate the US Federal Reserve will start lowering interest rates by the end of next June, with a gradual, quarterly pace of reductions from that point.
“The cuts in our forecast are driven by this desire to normalise the funds rate from a restrictive level once inflation is closer to target,” Goldman economists, including Mr Jan Hatzius and Mr David Mericle, wrote in a note dated Sunday.
For now, the Goldman team is pencilling in rate cuts to begin in the second quarter of 2024. The rate-setting Federal Open Market Committee (FOMC) is expected to skip an increase in September and conclude at the November meeting “that the core inflation trend has slowed enough to make a final hike unnecessary”.
WILL THE INTEREST RATES ALWAYS BE HIGH?
BREAK DOWN OF INTEREST RATES FOR $1 MILLION PROPERTY
NEW LAUNCH CONDOMINIUM
STAGE | INSTALMENT | INTEREST | TOTAL INTEREST |
FOUNDATION | $239 | $167 | $1,002 |
FRAME WORK | $716 | $500 | $1,500 |
WALL | $955 | $667 | $2,001 |
CEILING | $1,194 | $833 | $2,499 |
DOOR & WINDOW | $1,432 | $1,000 | $3,000 |
CARPARK | $1,671 | $1,167 | $14,004 |
TOP | $2,864 | $2,000 | |
CSC | $3,581 | $2,500 |
TOTAL INTEREST TILL TOP (3-5 YEARS) : $24,006
RESALE CONDOMINIUM
YEAR | MONTH | INSTALMENT | TOTAL INTEREST |
1 | 12 | 3581 | 29,759 |
2 | 24 | 3581 | 29,221 |
3 | 36 | 3581 | 28,661 |
4 | 48 | 3581 | 28,078 |
5 | 60 | 3581 | 27,472 |
TOTAL INTEREST FOR 3 YEARS: $87,642
TOTAL INTEREST FOR 5 YEARS: $143,193
BREAK DOWN OF INTEREST RATES FOR $2 MILLION PROPERTY
NEW LAUNCH CONDOMINIUM
STAGE | INSTALMENT | INTEREST | TOTAL INTEREST |
FOUNDATION | $477 | $333 | $1,998 |
FRAME WORK | $1,432 | $1,000 | $3,000 |
WALL | $1,910 | $1,333 | $3,999 |
CEILING | $2,387 | $1,667 | $5,001 |
DOOR & WINDOW | $2,864 | $2,000 | $6,000 |
CARPARK | $3,342 | $2,333 | $27,996 |
TOP | $5,729 | $4,000 | |
CSC | $7,161 | $5,000 |
TOTAL INTEREST TILL TOP (3-5 YEARS) : $47,994
RESALE CONDOMINIUM
YEAR | MONTH | INSTALMENT | TOTAL INTEREST |
1 | 12 | $7,161 | $59,519 |
2 | 24 | $7,161 | $58,443 |
3 | 36 | $7,161 | $57,322 |
4 | 48 | $7,161 | $56,157 |
5 | 60 | $7,161 | $54,944 |
TOTAL INTEREST FOR 3 YEARS: $175,284
TOTAL INTEREST FOR 5 YEARS: $286,385
BREAK DOWN OF INTEREST RATES FOR $3 MILLION PROPERTY
NEW LAUNCH CONDOMINIUM
STAGE | INSTALMENT | INTEREST | TOTAL INTEREST |
FOUNDATION | $716 | $500 | $3,000 |
FRAME WORK | $2,148 | $1,500 | $4,500 |
WALL | $2,864 | $2,000 | $6,000 |
CEILING | $3,581 | $2,500 | $7,500 |
DOOR & WINDOW | $4,297 | $3,000 | $9,000 |
CARPARK | $5,012 | $3,500 | $42,000 |
TOP | $8,593 | $6,000 | |
CSC | $10,742 | $7,500 |
TOTAL INTEREST TILL TOP (3-5 YEARS) : $72,000
RESALE CONDOMINIUM
YEAR | MONTH | INSTALMENT | TOTAL INTEREST |
1 | 12 | $10,742 | $89,278 |
2 | 24 | $10,742 | $87,664 |
3 | 36 | $10,742 | $85,984 |
4 | 48 | $10,742 | $84,235 |
5 | 60 | $10,742 | $82,416 |
TOTAL INTEREST FOR 3 YEARS: $262,926
TOTAL INTEREST FOR 5 YEARS: $429,577