The mortgage market has remained in a narrow range for the past several months. We feel the interest rate complex is currently in a holding pattern until there is evidence of inflation getting closer to the 2% Fed target rate, or unemployment rises to a level of creating concern for the Federal Reserve. Neither one of these is occurring at this moment, but we are one or two CPI and employment reports away from a potential breakthrough in rates trending down. Another salient ingredient of this recipe is the level of indebtedness of the country. If the current administration can reign in spending and reduce the deficit, this will go a long way in potentially paving the way for lower rates as well, as servicing the massive debt is a burden to the nation. The ongoing effort of Elon Musk’s DOGE review of different agencies has the potential to really highlight the lack of government understanding of what monies are actually being spent on and how much waste there truly is — furthermore, reviewing the efficiencies and effectiveness of government versus hiring more people and throwing money at who knows what programs.
As far as the mortgage market is concerned, rates have remained steady in the mid to high six percent range. We have successfully been closing both multifamily and commercial loans that had loans maturing or rates rolling without the borrower’s having to make any principal reductions. As a reminder, we offer a full spectrum of residential loan products that do not require tax returns. These loans are based on bank statements and/or rental income on the property.
A few notable recently closed loans
- $10,000,000 – 70-unit Affordable Housing Construction Loan with a local community bank.
- $4,950,000 Sale in Newport Beach — 70% loan, challenging underwriting bank statement deal.
- $750,000 fixed rate 2nd mortgage underwritten with business bank statements.
As always, we look forward to answering your questions about potential financing.
Stay Tuned! Very truly yours, Gloria, Curtis, Ted, Coby, Ben & all of us at Centek Capital Group!
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