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10 Year Treasury

Market Update

Friday, Mar 08, 2019
by Jeff Meierhofer

The latest market research shows that the commercial real estate market is expected to stay strong throughout 2019.  Even with the Fed raising short term interest rates 4 times in 2018, it is believed that the cycle will continue with strong volume and steady cap rates.  There is continued caution that we are “late in the cycle” for asset appreciation. However, both equity and debt capital remain widely available and support an active buying market.

 

The 10-year treasury hit 3.24% in November before dropping back down to hover around 2.7% currently.  The January announcement from The Fed that they might slow the pace of future interest rate hikes is believed to be a factor in the pundits view that rates will remain fairly constant through the year.  Cap rates tend to move with increased interest rates due to the higher cost of borrowing.  This change was minimal at the end of 2018 and does not appear to have changed the 2019 market so far.

 

Commercial lending rates and programs are excellent in this window of economic stability. TMG is ready to help guide you into a loan program that fits your individual needs for your long term or short term CRE investment loans.


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