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Tuesday, January 05 2010 00:00 |
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What's Up?
Rates. Although the Ten year Treasury has risen about 50 bps from its recent lows, it is still under the 4.00% mark that it hit in June.
Short term rates remain at record lows. There is some thought that the Fed is trying to push savers into longer term, riskier assets. The record yield curve also indicates that the market is anticipating inflation.
Banks, which lowered rates recently, have raised their five and seven year rates however the rise was moderate, around 15 bps. Banks are looking for deals. A Community Bank, probably the best priced lender in this area, actually invited us to lunch, looking to drum up business. However increased appetite for deals has not translated into cutting any corners on underwriting or documentation.
Most of our Borrowers are still taking low adjustable rates, figuring that by the time the adjustables turn up, rents and values will be up as well.
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