“We all knew the ultra-low mortgage rates seen over the last couple years wouldn’t last forever. Still, the recent rise of a full percentage point over a two-month period left even the steeliest of apartment professionals reaching for their Pept-Bismol. From early May to early July, the benchmark 10-year Treasury yield, against which lenders quote most fixed-rate loans, shot up more than 100 basis points (bps), from about 1.6 percent to more than 2.7 percent. Meanwhile, lender spreads—the amount a lender adds to the benchmark to produce a final interest rate—have also widened gradually over the course of the year…”
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The Interest Rate Surge and Its Impact on Multifamily Multifamily Executive
By: Brad Berton
August 22, 2013
Link to read more: http://www.multifamilyexecutive.com/interest-rates/the-interest-rate-surge-and-its-impact-on-multifamily.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_082213&day=2013-08-22