Interest Rate Report - 12/17/24

Last week wasn't great for?interest rates.?They moved higher on each of the 5 days.?Fortunately, this week, the rate rises seem to have leveled off.??

Ten year treasuries as of this morning are at 4.4%.

Volatility risks increase substantially on Wednesday when the Fed releases its next policy announcement.?Out of the 8 Fed meetings per year, 4 of them include an update on each Fed member's rate projections. These meetings tend to produce bigger reactions in rates and this meeting is one of those 4.

Traders are already assuming the Fed will pencil in a slower pace of rate cuts than they did in the September meeting. Some of the recent rise in rates reflects those trades.

And as always, wherever rates go from here, please give us a chance to get you the very best conventional and Bridge financing programs for all your commercial RE needs, (i.e. Senior Debt, Preferred Equity, or Mezz debt).

And if you are buying or refinancing a commercial property and need to close fast, there are great options available, with some Bridge loan programs that can close within 2 weeks – 3 weeks! These programs even offer Capex money.

Please give us a call to see what rates and terms we can get for you.

Here is a snap shot of interest rates as of 12/17/24 and available LTVs:

Multi family –

·???????5.4% -6.75%

·???????75% - 80% LTV

Industrial –

·???????6.15% - 7.25%

·???????70% - 75% LTV

Retail / Office –

·???????6.75% - 7.8%

·???????65% - 70% LTV (75% LTV is possible with strong occupancy, strong tenants, densely populated areas and strong sponsors)

Bridge -

8% - 13% Interest Only (Stabilized and Construction)

Please give me a call to discuss your best options!

Thank you!?

Bob Beckman

Senior Finance Director | Philadelphia Tri-State Region

[email protected]

Mobile: +1 215 850 3422