The rate on the 10yr fixed (30yr amortization) apartment building loan we track stayed in the 5.0-5.1% range for the second week while the spread to the 10yr Treasury remained in the 240 area, still lower than the 2013 average of 264:
The narrower spread makes sense in light of the July Senior Loan Officer Opinion Survey on Bank Lending that reported loosening lending standards for commercial real estate loans (including apartments) even as loan demand picked up:
It seems like apartment lending is getting more competitive and that’s good for investors. See the Calculated Risk piece on the report here: Fed Survey: Banks eased lending standards, “experienced stronger demand in most loan categories”
On the apartment loan we track: Once again this is one rate on one particular type of loan from one bank (for details see the notes here: Apartment Building Loan Rates Fall as Spreads Narrow)
For details on how the Constant Maturity 10 year Treasury rate is determined see: 10yr Treasury back in 2.6% range bringing apartment loan rates up
