The last week of July marked one year since the last move in the Fed Funds rate and the lowest level in the 10-Year treasure since June 2023. A declining treasury yield generally points to lower interest rates, which might seem favorable for commercial real estate (CRE) investors. However, reality is more nuanced. Even though lower rates could reduce borrowing costs, the broader economic context plays a crucial role. If some lenders were hesitant to lend at higher rates when the economy appeared strong, they could be less likely to lend at lower rates amid potential recession fears. The economic uncertainty adds risk and could make lenders more cautions, counterbalancing the benefits of lower borrowing costs.
As yields fluctuate, "current rates" quickly become obsolete. However, spreads remain applicable and fitting to deal characteristics. Though rates are important, having a well articulated and defined debt plan matching your long-term investment plan is vital. The experts at CommCap are here to help you understand goals and navigate the current market providing access to multiple lending sources, early rate-locks, cash out refinancing, and more.
As your exclusive advisors, CommCap utilizes proprietary systems, market expertise, and years of experience to secure aggressive financing options that best fit your property. Exclusive correspondent and servicing relationships with Life Insurance Company, CMBS, and Agency lenders ensure a broad and in-depth representation of current market conditions. Our team of advisors craft a loan structured to enhance revenue and allow you to focus on increasing cash flow.
We do not list, sell, manage, or lease property. We only arrange financing and are the best at what we do.
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