26 September 2008

4.50% Interest Rates?...Multi-Family Rates very good NOW!!

Interest rates remain low for Multifamily permanent loans.
Spreads for Fannie Mae financing have for the most part held steady. For Freddie Mac financing, spreads have fluctuated more, but they have done so within a narrow range.

Where spreads have widened, they have been countered by lower Treasury rates with the result that interest rates are still in the low-6-percent range for 10-year Fixed Rate Mortgages (FRMs). Rates for 10-year FRMs is 6.25 percent. Five-year FRMs are bringing about 5.52 percent and seven-year FRMs are carrying about 5.77 percent.

On the ARM side, the benchmark LIBOR rates have spiked. However, the Freddie Mac reference bill benchmark is trading below LIBOR. The 30-day Freddie Mac reference bill benchmark is 2.11 percent compared to 2.75 percent for the 30-day LIBOR.

Seven-year capped ARMs are currently particularly popular. Capped ARMs are carrying interest rates of 4.50 percent, with a cap of 6.5 to 6.75 percent (assuming up to 70 percent LTV). Fannie Mae capped ARMs are tied to LIBOR but still bringing interest rates of 5.46 percent for the five-year ARM (for LTVs of 70 percent or less).
Please contact me or go to My Lender Page to speak to either Dean Wong or Dave Campbell about all your loan needs.