The apartment building loan rate we track remains in the 4.6-4.7% range where it’s been since the middle of July. Meanwhile the ULI <60% LTV loan rate has fallen 10 basis points over the same period with its spread to the 10 year Treasury coming in from 1.32% to 1.27%. That’s a very slim margin indicating a very competitive market for those loans. Typically the 10yr apartment loan rate loosely tracks the ULI rate with a lag so we’re hoping to see the rate come in a little more for deals closing in the next few months.
While everyone seems to ‘know’ that rates must be going up influential economist Anatole Kaletsky (the Kal in GaveKal Research) makes a pretty convincing argument that the central bankers in the US, UK and Europe will be following their contemporaries over at the Bank of Japan, keeping rates ‘lower for longer’ in a piece out this week from Evergreen/GaveKal. Note that registration is required but they will only send you the weekly ‘Virtual Advisor’.
About the spread between the T10 and the apartment building rate we track, Continue reading 10yr Apartment Investment Loan Rate Steady While ULI <60LTV Rate Drifts Lower