Big Gains Cause Concern

Posted on by Randolph Taylor

 

Big Gains Cause Concern

 

While rallies in oil and metals—from aluminum to nickel—faltered during the week, big gains have spurred increased speculation that inflation will pick up. Speculation over inflation has caused the 10-year Treasury yield to increase from 2.83% at the start of the week to 2.91%; the first time the 10-year yield has surpassed 2.90% since February. Investors are now nervous, wondering what happens if crude takes off and wages go higher, housing costs escalate, etc., and what will that mean for the overall economy? 

Index Rate
3-Year Swap 2.79%
5-Year Swap 2.83%
7-Year Swap 2.90%
10-Year Swap 2.93%
5-Year Treasury 2.77%
7-Year Treasury 2.87%
10-Year Treasury 2.92%
Prime 4.75%

 

Multifamily Loan Programs Greater Than $5 Million
Fixed Rate Agency Lenders Portfolio Lenders*
Term LTV Interest Rates LTV Interest Rates
5 Yr. 55 to 80% 4.95% to 5.37% 55 to 75% 4.20% to 4.35%
7 Yr. 55 to 80% 4.85% to 5.27% 55 to 75% 4.30% to 4.50%
10 Yr. 55 to 80% 4.89% to 5.31% 55 to 75% 4.40% to 4.75%
*Rates indicative of national average, Act/360

Multifamily Loan Programs Less Than $5 Million
Fixed Rate Agency Lenders Portfolio Lenders*
Term LTV Interest Rates LTV Interest Rates
5 Yr. 55 to 80% 4.65% to 5.05% 55 to 75% 4.20% to 4.35%
7 Yr. 55 to 80% 4.85% to 5.15% 55 to 75% 4.30% to 4.50%
10 Yr. 55 to 80% 5.15% to 5.35% 55 to 75% 4.45% to 4.75%
*Rates indicative of national average, Act/360

 

Commercial Loan Programs
Fixed Rate Portfolio Lenders*
Term LTV Interest Rates
5 Yr. 55 to 75% 4.75% to 4.95%
7 Yr. 55 to 75% 4.85% to 5.00%
10 Yr. 55 to 75% 4.95% to 5.25%
15/15 55 to 75% 4.75% to 4.95%

Bridge Financing
Bridge Floating LTV Spread Over Libor
Stabilized 65% 250 to 425
Re-Position 80% 300 to 500
*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions

 

Recent Transactions
 
 
Multifamily 
Arlington, TX$3,650,0004.93% Fixed

1-yr I.O.

5-yr term/30-yr amort..

 Multifamily 
Coral Springs, FL$1,700,0004.25% Fixed

10-yr term/30-yr amort.

 STNL 
Broken Arrow, OK$1,319,4284.90% Fixed

10-yr term/30-yr amort.

 Shopping Strip 
Compton, CA$1,241,5004.875% Fixed

5-yr term/25-yr amort.

 

Contact us about Financing your next Commercial Real Estate Purchase
or Refinance of existing Debt

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