For Real Estate Professionals Seeking a Market Edge
Should the Fed Raise, Lower, or Maintain Interest Rates?
The Federal Reserve is faced with a difficult decision in the months ahead regarding whether to adjust interest rates or keep them at their existing low levels. Many experts have differing opinions on the best approach for monetary policy. If rates are maintained at existing levels, the nation will risk placing itself ‘behind the curve’ in curtailing inflation. If rates are raised prematurely, there is the risk of snuffing out current, gradual residential recovery, as well as the potential for recovery in other sectors. Lowering rates may risk hyper-inflation.
Today's apartment and commercial rates are still attractive in comparison to past rates. Apartment loans for 10-year fixed rate funds are as low as 5.50%; while commercial loans are priced between 6.75% and 8.0%. Preliminary indications from the latest meeting of the Federal Reserve report the overall consensus being that the Fed will maintain existing rates in the short term and raise rates as government assistance subsides&59; allowing recovery to continue.
We will keep you posted…
Hot Money
Insurance Company Making Loans Nationwide
Penstar identified a lender actively funding acquisition/permanent loans on stabilized industrial, office, mini-storage, and retail properties located nationwide. The lender will advance up to 60% loan to value at terms and coupons as follows: 5 years at 6.25%; 7 years at 6.5%; and 10 years at 7.0%. Loan requests considered will range from $1 million to $5 million. To learn more, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.
Helpful Humor
The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week
“The Principles of Good Sportsmanship” With his eyes solemnly pointed at his feet, the young boy responded, “Yes, Sir.” “Well then,” insisted the coach, “Would you please explain that to your mother?!” |
30
Day Libor |
10-Year
Treasury |
Prime |
0.32% |
3.74% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367