We did see a move below the 10-year yield resistance level this past week. In the graph below, you can see it illustrated in the chart. Even though the FED is expected to raise the discount rate in mid-June, this chart shows that the bond market feels interest rates are still too high right now regardless. Note that the next resistance level to the downside is 1.8%.
I can conjecture as to the various reasons why the bond yields are fighting with the FED’s desire to increase rates. Nevertheless, rates are trending down. This is great news for buyers and for commercial/apartment property owners that need to refinance. Market timing, whether in the stock market or in real estate, is always difficult. I just prefer clients take advantage of these low rates if it makes sense for their personal situation.
As always, I welcome any of your strategic financing questions. Have a good week.
Vera, a Saratoga High School student, is hosting her own violin recital to raise awareness and funding for Alzheimer’s. For more information or to RSVP, please contact Elsie Wu at ElsieRealtor@yahoo.com or 510-468-4508.
Article of Interest:
Forbes reported “This Is What Will Happen To All The Empty Stores You’re Seeing.”
See the table below for approximate interest rates.
|Apartments||3.715% – 4.520%||3 to 10 year (30 yr amortization)|
|Commercial||4.045% – 4.820%||3 to 10 year (25 yr amortization)|
|Construction||Call for Rate||Call for Rate|