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

Apartment Conditions Improve But Still Below Par- NMHC July Survey

All four of the indexes in National Multi-Housing Council’s July survey improved but remained below the 50 better/worse boundary bringing the average up to 46 from 39.

The biggest improvement was in the Continue reading Apartment Conditions Improve But Still Below Par- NMHC July Survey

Apartment Loan Rates Continue To Drift Lower- June 2017

The apartment investment loan rates we track have continued their downward trend. In March the 10yr loan (details below) hit 4.92%, the highest its been since February 2014, and has drifted lower since coming in at 4.48% this week. That and the Continue reading Apartment Loan Rates Continue To Drift Lower- June 2017

#Multifamily Loan Rates Find New Lower Floor

Apartment Building Investment Loan sets lower floor for rate.
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Both the 10yr and 15yr apartment building investment loan rates we track fell to lows not seen but for just one week last year and they’ve remained there for five weeks. The 10yr rate dropped 13 basis points to 4.25% and has stayed there since Sept. 14. Likewise the 15yr loan (see below for details on the loans we track) also fell 13bp to 4.375% where it has remained from the middle of September on.

Outside of that one single week last year when Continue reading #Multifamily Loan Rates Find New Lower Floor

Apartment & CRE Lending Today- great charts from MPF Research

Apartment Building Investment and Commercial Real Estate Lending Today
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Great set of charts on apartment building investment loans vs. CRE and development lending. If recency bias has you thinking bubble check in with the demographics which show millennials are the largest population group in the country and 30% of them are still in their parents’ basement. As they unbundle they’ll be looking for apartments but they’ll be competing with a lot of empty nest boomers too. Demographics is destiny.

Apartment Financing Hits An Air Pocket in Latest NMHC Survey

Apartment Building Investment Lending Conditions July 2015

The National Multifamily Housing Council’s NMHC Quarterly Survey is out now and three of the four categories held fairly steady but the availability of  debt financing dropped twenty five points from sixty to thirty five. A reading below fifty indicates worsening conditions and the report on the survey said that with Continue reading Apartment Financing Hits An Air Pocket in Latest NMHC Survey

Aided by falling spread, apartment loan rate fights its way back below 4.5%.

10 year apartment building investment loan rates June 2015
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The apartment building investment loan rate we track moved down from last week’s 4.532% to just under 4.5 at 4.489% aided by the spread to the 10yr Treasury (T10) compressing to 2.142 versus the week earlier 2.185. Meanwhile the T10 and the ULI rate seem determined to raise rates even if the Fed doesn’t act. And Greece is set to Continue reading Aided by falling spread, apartment loan rate fights its way back below 4.5%.

Apartment Building Investment Loan Rate Continues Its Steady State

The apartment building investment loan rate we track remains at 4.375% where it landed back in the middle of January. Other than a brief one-week visit to 3.396% back in March which wasn’t even enough to move the chart line it’s been steady as she goes:

Apartment Building Investment Loan Rate April 2015
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With the 10year Treasury dipping below 2% the spread has been widening as 4.375% seems to be the new 4.5%. Once again people are expecting rates to go up later in the year (is this the third or fourth year for that prediction?) but the Fed and the Government have been following the Japanese model step for step and their Ushinawareta Jūnen (Lost Decade) is old enough to drink and will be graduating college soon. I’m not sure why anyone thinks this time will be different just because we’re talking dollars instead of Yen. But there is this:

That men do not learn very much from the lessons of history is the most important of all lessons that history has to teach. – Aldous Huxley

In other news Susan Persin, Senior Director of Research at Trepp has Continue reading Apartment Building Investment Loan Rate Continues Its Steady State

10 Year Apartment Building Investment Loan Rate Drops Another 6 Basis Points Today

The 10 year fixed rate apartment building investment loan we track fell 6 basis points (bp) to 4.369% today. (See loan details below):

10 year Treasury vs. Apartment Building Investment Loan Rate
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That drop doesn’t show up on the chart very well but it’s the first change in the rate since the middle of January when it had been flatlining at 4.5% since the end of November. Meanwhile the T10 (10yr. Treasury) had been working its way higher since hitting 1.68% in the end of January which in turn has been reducing the spread between the two rates from the 2.5% range down below 2.25% and coming in to 2.169 today. I expect the Continue reading 10 Year Apartment Building Investment Loan Rate Drops Another 6 Basis Points Today

Spreads Widen on 10 Year Apartment Investment Loan Rate, Trend or Seasonal?

The 10 year apartment building investment loan rate we track has returned to its old boundary of four and a half percent despite Treasuries in the two and teens again at the end of November. On the 28th the T10 was within 1pb of the mid-October Massacre low of 2.17. Something had to give for the loan rate to get back to the 4.5% range and it was the spread which jumped above 2.25 last week for the first time since February:

Apartment Building Investment Loan Rates vs Treasuries Yield Premium

The spread has gone from the Massacre low of 1.93 to 2.28, a 35bp climb in only seven weeks. Meanwhile the ULI <60%LTV last week was 3bps below its mid-October low, tracking the Treasury with a consistent spread of 1.38 in four of the last five weeks.

It’s interesting that the spread plunged Continue reading Spreads Widen on 10 Year Apartment Investment Loan Rate, Trend or Seasonal?