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The 10-year yield essentially stayed the same this past week.  Note that yields have been trending lower since early July.  And typically, the stock and bond markets do not like instability.  This instability would translate into a downward trend for both the stock market and interest rates.  However, there are indicators showing strengths in the economy and company earnings (on average) seem to be doing quite well.

Now let’s get back to instability.  As a nation, we had a tough week.  We all know what occurred.  In addition, the President’s Business Advisory Councils have now been shut down.  None of us knows how all of this will play out;  and each event contributes to further instability.  On the economic front, the chances of major reform have been reduced with the various resignations (along with the disbandment of the Councils).

With all of that, we have a few silver linings.  One, interest rates remain historically low allowing purchases and refinances to continue.  Two, the stock market has not dropped much at all (thus investment and retirement accounts are in decent shape).   Three, as bad as last week felt or still feels, it is not representative of the majority.  I believe that is an important point to remember.  Yes, we have been split in many ways as a nation for quite some time.  Perhaps, the behavior of the fringe groups will be what brings the majority together.

The Bay Area has been a melting pot for a very long time.  We have diverse groups and opinions.  And, we have been able to coexist quite well for a very long time.  I do not see this changing.  I am hopeful that we all can be respectful of each other’s opinions.  Somehow, we have always found a way to do this.  And, I suspect, we will do the same again as we all just want something better for our future.

That is it for this week.  As always, I welcome any of your strategic financing questions.

Article of Interest:

The SJ Mercury News shared “Real estate: Developer describes ‘epic’ impact of Google’s downtown San Jose plans.”

See the table below for approximate interest rates.

Type Rate Fixed Term
Apartments 3.625% – 4.450% 3 to 10 year (30 yr amortization)
Commercial 3.955% – 4.750% 3 to 10 year (25 yr amortization)
Construction Call for Rate Call for Rate
SV Commercial Lending