The apartment investment loan we track jumped up to 4.92% Monday, the highest level it’s seen since February 2014. The rate seems to be in an upward trend, even more so than the T10 (10yr Treasury) driven by a widening spread since the beginning Continue reading Treasury Spread to the Apartment Loan Rate Opens Up
In the latest Freddie Mac Renter Survey out this week renter’s preferences for renting have grown since a year ago. Boomers who would never own a home jumped from just under a quarter to almost a third of respondents. Meanwhile over half Millennials Continue reading Fewer Renters Are Working Toward Homeownership – Latest Study
Despite the ‘interesting times’ we’ve experienced since January 20, people still need a place to live, apartments still exist to serve that need and investors can still get a loan to buy one. To borrow JP Morgan’s phrase (the banker not the bank) however, the apartment investment loan we track has continued to Continue reading Apartment Investment Loans Survive Trump Inauguration
The average of the NMHC’s Apartment Conditions fell to 24 from 35 with all series but Equity Financing (holding at 33) falling from last quarter. Both Market Tightness and Sales Volume came in at 25 (down from 28 and 35 respectively) while the more volatile Debt Financing fell to 14 from 38 last fall.
The Equity Financing which may be the most Continue reading National Multihousing Council Apartment Conditions Fall Further
The apartment investment loan we track hit its highest level since April 2014 just after the Fed announced its second rate raise in ten years. Fortunately for apartment investors who are Continue reading Apartment Investment Loan Rates Down Off Their Christmas High
The apartment investment loan we track has jumped up five times in a month, the most change it’s had since the Taper Tantrum in 2013. From the low of 4.125% the week before the election it is now up to 4.75% as of yesterday. With the Fed due to Continue reading Woo-hoo We’re All Gonna… Have More Expensive Apartment Loan Rates
And we’re off to the races apparently. The day after the surprising election results the US Treasury 10 year jumped 19 basis points blowing through the 2% level to close that day at 2.07%. You would have to Continue reading So That Happened, Then This Happened- Apartment Loan Rates Jump with T10
The latest National Multifamily Housing Council Apartment Conditions Quarterly shows the average fell 15 points to 35, dragged down by Sales Volume dropping to 42 from 50 and the more volatile Debt Financing which descended to 38 from 62. Market Tightness (occupancy & rent growth) and Equity Financing Continue reading Apartment Investment Sales Fall Below 50 in Latest NMHC Quarterly Survey
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
Was talking about this just last week (again):
As a value guy like you it’s hard to figure out how buying something in the sixes on cap rate works out to be a good deal. But what if the Fed is trapped at the Zero Lower Bound and we are turning Japanese? Their ‘Lost Decade’ is now old enough to graduate with a Master’s degree and we’re following the exact same playbook. I offer last week’s Fed decision as exhibit #1. They would dearly love to raise rates just to prove they can but there’s just thin ice between us and
Continue reading Fed Chair Yellen- Maybe we are turning Japanese