Apartment Loan rates have risen in the last month with rising US treasury rates. The ten year treasury is now at 3.40%, from its low near two percent a few months ago.
FHA 223 F rates have risen the least since they are wrapped with GNMA insurance and are rated AAA. FHA 223 F loan can still be locked below 5% for a 35 year loan.
FNMA and Freddie Mac rates have risen more since there is uncertainty of their future credit rating when the government stops backing them up. Currently large apartment loan rates are about 5.45% for Seven Years and about 5.90% for ten year loans.
FNMA small apartment loans are now running at close to 6% for ten years.
Several clients have reported bank quotes of 50% to 60% loan to value and twenty year amortizations, offered by several large Midwestern regional banks. The loan amount is often to low compared to the 80% of purchase allowed by FNMA and FHA.
Thursday, December 30, 2010
Multifamily Fundamentals Best of Commercial Real Estate Property Types
Multifamily fundamentals in particular have improved, though not quite back to where they were during the more flush days of the mid-2000s. During 3Q10, average apartment vacancies nationwide were 7.7 percent, compared with 5.8 percent during 3Q07. Yet among property types, apartments are the healthiest in terms of 3Q10 vacancies:
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