Interest Rate Report – 3/4/25
Ten year treasuries are sharply lower this week! As of this morning, they are at 4.13%. And demand for Treasuries was steady this morning, lowering 10-year treasuries to its lowest since early December.
So with investors fearing that a tit-for-tat tariff battle between the U.S. and some of its trading partners would slow economic growth….why are Treasuries and interest rates coming down? Let me give you my theory that you aren’t reading elsewhere.
The revenues for the U.S. from its tariffs could reach almost $300 billion a year, or 1% of GDP. That could be a significant boost to the U.S. economy if those revenues are used to reduce the federal budget deficit rather than recycling them into the economy by cutting taxes or boosting federal spending,
Also, as softer U.S. economy data of late (along with the tariff news) there is an increased chance that the Federal Reserve could resume cutting interest rates this year at a faster pace than originally forecasted.
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 3/4/25 and available LTVs:
Multi family –
·???????5.4% -6.75%
·???????75% - 80% LTV
Industrial –
·???????6% - 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 -
9% - 13% Interest Only (Stabilized and Construction)
Please give me a call to discuss your best options!
Lastly, if you are interested in learning about the crypto markets and Digital Assets as they are starting to intertwine with the Commercial RE sector, please let me know as I can send you information on that as well.
Thank you!?
Bob Beckman
Senior Finance Director | Philadelphia Tri-State Region
Mobile: +1 215 850 3422