Here is your apartment loan update. If you are considering a small balance apartment loan, please consider what is going on in the market right now.
US Treasuries rallied moving the 10 year yield below responded with a rally, getting the 10yr yield below 2.90% for the first time in three weeks. The treasury market has remained quiet even as Turkey’s economic crisis deepened. Global investors may seek safety in the US Bond market as the crisis worsens.
Fannie Mae Small Apartment Balance Loan Rate Update
The Fannie Mae Small Balance Loan program has seen interest rates remain steady and even dropping 7 to 10 basis point depending on the apartment loan product. Most of the drop can be attributed to the drop in the 10 Year Treasury.
Please Remember that Fannie Mae offers discounts to Apartments within a 5-50 unit range and as a high affordability component to the rents. These multifamily assets are eligible for a 40 basis point pricing discount.
Freddie Mac Apartment Loan Program as seen pricing hold for another week in once for all products, in all markets. This is good news considering that Freddie Mac has significantly dropped their rates over the past 3 weeks.
If you own or want to own an Apartment please consider both options when determining financing. We can help you tailor a multifamily loan product to your specific needs. If you want to know more, press apply now.
As of August 6th, 2018 there are no changes to the Freddie Mac Small Balance Apartment Loan rates. If you would like a quote, click apply below.
If you are looking for the benefits of Freddie Mac Small Balance Loans check out our page: The Benefits of the Freddie Mac Small Balance Loan Program.
As with Freddie Mac, we are seeing no real movement in spread levels at this point. The UST has been hovering around 3.0% at the time of this post the 10 Year note is a 2.96. With good economic data on the horizon, many analysts are predicting an rise in bond yield levels.
As always, if you need assistance or have any questions about multifamily financing please do not hesitate to reach out to one of our Apartment Loan Experts today.
Small Balance Apartment Loan Market Update:
The 10yr US Treasury is currently sitting at ~2.96%, only 1bp higher than last week.
Its a busy week and the Treasuries could be effected. Things to Note. Payroll and unemployment release coming this week.
All remains relatively stable in the Fannie Mae Small Balance market. No significant changes to the pricing and rates have remained stable.
Properties within a 5-50 unit range with high affordability are eligible for a 40bps pricing discount. High affordability is defined as AT LEAST 50% of the units are at 80% AMI or lower. Let our specialist determine if your apartment project is a fit for this discount.
Effective August 2, 2018, The Freddie Mac Small Balance Loan program base pricing has decreased by 10bps for all products in all market tiers.