This past week saw the 10-year yield break through the support line of 2.3%. On the graph below, you can see the new support line has been established at about 2.19% (I also drew in the red line at about 1.8% which is the next support line if the yield breaks down below 2.19%). With the FED expected to raise rates soon (and the expectation that they want to raise rates more in the near future), it is interesting to see that the market is fighting the increases.
One can easily argue that politics has the markets (stock and bond) a bit jittery. For most of this year, these very same markets have ignored much of the political posturing. However, that changed a bit last week. Whether the news is real or not, no one knows. Does the FED want to raise the discount rate? Of course. Do they need to? Well, my guess is they need to get the raises in while they can. That way they will have the room to lower rates should the economy suffer.
So, with all of that, enjoy the interest rate reprieve once more. One never knows what is going to happen week to week, as our own US soap opera continues to unfold. As always, feel free to call me with any of your strategic financing needs.
Articles of Interest:
The Street reported “At SALT, One of the Richest Real Estate Investors Alive Is Still Pitching Gloom and Doom.”
Forbes reported “Why Millennials Are Interested In Real Estate Investing.”
See the table below for approximate interest rates.
|Apartments||3.755% – 4.620%||3 to 10 year (30 yr amortization)|
|Commercial||4.095% – 4.920%||3 to 10 year (25 yr amortization)|
|Construction||Call for Rate||Call for Rate|