Link to Reference Article: Fed Holds On Rate Hike For June Yes, the Fed held rates for the first time in 15 months at their June FOMC meeting. Despite this, CRE will still see increased debt costs from the last-minute deal on the debt ceiling. This come in the form of increased yields on short-term T-bill auctions. Since these provide a lower-risk option for investors to park money than CRE lending, lending rates must be corresponding higher to mitigate the increased risk. Specifically, 'A 26-week Treasury that issued on March 30, 2023, went on initial sale for an annual percentage return of 4.83%. But a 26-week Treasury bill that will issue June 15 auctioned with an investment rate of 5.38%, a 55-basis point jump.'
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Contributed by: Andy Crawford, CCIM
Andrew (Andy) Crawford is Vice President of CommCap Advisors, responsible for new loan originations through life insurance correspondent, agency, CMBS, and other institutional lenders. Prior to joining CommCap, Andrew was a commercial investment broker for a local boutique real estate company. As a broker, he gained valuable experience in the underwriting and closing of commercial acquisitions and dispositions. In 2015, Andrew transitioned to the finance side of the industry to more fully utilize his analytic, detail-oriented nature. He has originated, underwritten, and closed over $350M in finance transactions for commercial and multifamily properties.
As your exclusive advisors, CommCap utilizes proprietary systems, market expertise, and years of experience to secure aggressive financing options that best fit your property. Exclusive correspondent and servicing relationships with Life Insurance Company, CMBS, and Agency lenders ensure a broad and in-depth representation of current market conditions. Our team of advisors craft a loan structured to enhance revenue and allow you to focus on increasing cash flow.
We do not list, sell, manage, or lease property. We only arrange financing and are the best at what we do.