Buckle up, the second half of 2022 has begun. At the tail end of quarter number two, the Fed increased interest rates by 75 basis points - the most by the U.S. central bank since 1994. This increase triggered scrambling and movement in the CRE market followed by an "over the weekend" spike of 24 basis points - its biggest move since March 2020. The 10-year yield continued to climb, peaking at 3.49% in mid-June (a high not seen since April 2011).
Back in July of 2021, the U.S. 10-year Treasury was at 1.48%, 10-year Swap at 1.47%, 1-month LIBOR at 0.10% and Prime Rate was at 3.25%. Fast forward 12 months, index rates are generally 1.50% higher across the board. Despite the sharp increase in rates, historical data shows current yields are at similar levels as 2018 and the first half of 2019. Additionally, due to the slight pullback the last few days, this could be a great time to take advantage and lock in a lower rate.
Although uncertainty and fear of everchanging rates add more layers to the decision process, by working with lenders who provide early rate locks, certainty of execution, and greater flexibility, CommCap is still able to secure competitive financing and place debt fitting short and long-term goals.
As your exclusive advisors, CommCap utilizes proprietary systems, market expertise, and years of experience to secure aggressive financing options that best fit your property. Exclusive correspondent and servicing relationships with Life Insurance Company, CMBS, and Agency lenders ensure a broad and in-depth representation of current market conditions. Our team of advisors craft a loan structured to enhance revenue and allow you to focus on increasing cash flow.
We do not list, sell, manage, or lease property. We only arrange financing and are the best at what we do.