CMBS Rates and Market Commentary from Liberty SBF for Feb. 20, 2014

banner-lender-servicesA flurry of disappointing data drove up prices on 10-year treasurys as investors fled to bonds pushing the yield down below 2.7% on Wednesday morning. New York manufacturing slowed and homebuilder confidence fell.

This unexpected downward push after 2013 ended on a positive note has tested the low side range of the benchmark bond yields. Economists predict a range between 2.62 – 2.85% over the next month or so.

Stormy weather throughout the U.S. in the last coupled of months might be a major factor influencing the data as much as any dark clouds on the economic horizon.

“Early reports for January suggest that poor weather disrupted the operations of manufacturers and the problems may have carried over in the February,” reported MarketWatch.

Jobs may also get back into the picture as the CBO minimum wage report showed that if raised to $10.10 as President Obama wants, it will cost 500K jobs. On the other hand the CBO says the hike will lift incomes for 16.5 million people. Read more on Washington Post’s Wonkblog.

With news coming out on Wednesday and the FOMC minutes expected to be mostly positive despite the recent slate of disappointing jobs reports and housing numbers. If so, 10-year treasuries could stick around 2.75%.

Looking ahead and making predictions on where the 10-year will be by year’s end, Michael Fratantoni, MBA chief economist and senior vice president, said he expects yields to be at 3.3% by the end of 2014 and at 3.5% by Q4 2015, according to Multi-Housing News Online.

Commercial Mortgage-Backed Security Loans (CMBS)

Weekly Rate Sheet 2/19/2014
Non-Recourse loans for Limited Service Hotels, Office, Industrial, Retail, Multifamily. (As low as $3 Million)

Current Rates
4.60% I 5 YEAR FIXED
5.32% I 10 YEAR FIXED

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