From The CRE Financial Market Trading Desk
Presented by Scott Taccati – President Trillium Capital Resources
Take a quick look at this chart below. The 10-year treasury yield over the last 5 years is reaching its mid 2016 support level in the 1.45% range! Those treasury bonds held by CHINA ($1.1 trillion face value) now have a market value much more than the $1.1 trillion face value. China has recently been slowly selling their treasury holdings. If they divest from treasuries in a systematic fashion, the long-term yields will go up with more supply of treasuries for sale on market. Just something to think about.
Here is what is happening in the CRE financial markets:
– While the benchmark 10-year Treasury is declining, lender spreads are continuing to widen. This is from the agencies and balance sheet lenders as well. With the 10 Year hovering around 1.50, realistically the lowest pricing from life companies is around 3.25% (floor) on low LTV ratio loans, for 10-year money.
-FNMA and Freddie Mac Spreads are WIDE, up to 300 or more bps. Rates are in low 4% to 4.75% range for 10 years. Spreads should come back down once the new year is here as agency debt is way beyond budget.
-HUD rates are around 3% prior to MIP, regardless of asset class. A7 refinance opportunities are fantastic if you have a HUD loan now! Call or email us!!!! We have run an analysis on every HUD deal in the USA. SAVE MONEY WITH THE LOWER RATES AT LITTLE COSTS.
Recent rate locks we have procured are 3.15% fixed for 10 years and 3.40% fixed for 15 years. These are FANTASTIC LEVELS and will rival any deal out there.
Please let us know if we can be of assistance to you! Thank you for taking the time to review this information.