As we leave summer behind and make our way into fall, we want to provide a quick overview of the real estate finance market. All in all, rates have declined from the year’s highest levels and have retraced back with rates in the high 5% range with some hybrid fixed rate loans in the low to mid 5% area. We are closing deals in the high 4% area on owner occupied commercial transactions. The interest rate complex is in a tight range waiting on the Federal Reserve to lower rates again as well as waiting to see the economic data flow. Markets are betting on slightly lower rates in the upcoming months. We advise our clients to reach out and discuss potential financing options, so we have a strategy in place of moving forward. In many instances, with current rates, now is an excellent opportunity to refinance without having to wait on lower rates. Our relationship with our clients allows us to refinance again with limited costs if rates continue to decline. In some cases, we absorb 100% of all the associated fees. Keep in mind, there are many loan programs available that utilize bank statements for qualifying – monthly business cash flow or just the asset base itself. Another tool we utilize is a borrower’s retirement account to provide cash flow for underwriting purposes. As we all know, each borrower has their own unique set of circumstances that we can analyze and move forward with a strategy that will accomplish the financial goal..
On the real estate front, we see prices remaining stable with houses being on the market a little longer than has been the norm for the past few years. Ultimately, this could lead to slight price declines. However, if rates decline into the lower 5% area or high 4% range, prices will most likely at a minimum stabilize or potentially resume their upward trajectory. The monthly payment is one of the most important driving factors in the decision-making process of purchasing a new home.
Best regards,
Gloria Shulman, Curtis Cohen, Ted Kachadorian & All of us from Centek
Centek Capital Group | gloria@centek.com | centek.com
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