Federal Reserve policy dominated the capital markets in 2022. Everyone involved in commercial real estate witnessed the change and is now speculating on what 2023 and how best to advise clients making investment decisions.
Peaking at 4.25% at the end of October, the 10-year Treasury yield closed the year at 3.88% - an increase of over 230 bps compared to December 31, 2021. To stop soaring inflection, the Fed put the pedal to the metal with 25 and 50 basis point increases in March and May followed by another 4 consecutive 75 basis point increases until the final 50 basis point hike in December.
Transaction volumes reacted in kind by plummeting after the first part of the year with investor appetite fading. Institutional lenders are doing their best to adjust to the market and borrower demands by introducing new programs. For example, 5-year fixed rate options with flexibility to repay if rates fall in the near term and interest only periods to reduce mortgage payments.
As yields fluctuate, "current rates" quickly become obsolete. However, spreads remain applicable and fitting to deal characteristics. The experts at CommCap are here to help you understand goals and navigate the current market – early rate-locks, cash out refinancing, and more.
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.