Falling Spread Prevents Apartment Investment Loan From Jumping

Falling Spread Saves Apartment Investment Loan Rate

First I want to take a moment to remember all those who lost or gave their lives as well as their families and friends that terrible day sixteen years ago. I have four friends who but for their own unique twists of fate would have been in the twin towers on 9/11 and their good fortune is a stark reminder of so many who weren’t that lucky. Also I keep in my thoughts all those who are suffering because of wild fires, hurricanes, floods and earthquakes around the world right now. – Giovanni

The 10 year apartment investment loan rate we track fell 10 basis points (bp) from last month even though the benchmark 10yr Treasury rate jumped 8bp today to 2.14%. The spread between the two shrank to 218bp, the Continue reading Falling Spread Prevents Apartment Investment Loan From Jumping

Is Builder Sentiment a Better Predictor of the Apartment Investment Cycle?

Builders Predict the Apartment Cycle

Are apartment builders better predictors of the Apartment Building Investment Cycle? Based on the latest cycle at least (a sample of one, admittedly) it appears that they are.

On the chart above the blue line represents the NAHB’s Multifamily Production Index (MPI) which began falling in the 3rd quarter of 2005 and fell for four straight Continue reading Is Builder Sentiment a Better Predictor of the Apartment Investment Cycle?