Lowest 10-year treasury rates in history provide a unique opportunity

Lowest 10-year treasury rates in history provide a unique opportunity

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Last week the yield on the 10-year treasury, a general benchmark for 10 year fixed loans, went below 1.36%, for the first time ever. Volatility in the equity markets, driven partly by the unquantifiable effects of the COVID-19 virus on the global economy, has caused capital to buy treasuries in a flight to quality. Due to the increased buying of treasuries the yields on the 10-year treasury dipping below 1% in the last few days and closed today at an all-time low of .914%. The unprecedented chaos in the market has provided borrowers an opportunity to take advantage of some of the lowest interest rates in history. Due to the quick drop in the treasuries, many lenders are instituting floor rates, and are struggling to decipher whether these new treasury yields will continue in the future. The floors are ranging from the high 2% range to the low 3% range for 10 year fixed rates and longer on quality commercial real estate assets.

Contact us to see if you may be able to take advantage of this unique time in the market.

Why PSRS

  • Non-recourse financing
  • Lock rate at application
  • Terms – Floating Rate to 40 Year Fixed
  • Minimal to no reserve structure
  • Current servicing portfolio of $5.5 Billion – Fast servicing decisions
  • Nationwide coverage in the US on all commercial and multi-family real estate
  • Loan sizes from $1 Million to $100 Million+

About PSRS

Founded in 1972, Pacific Southwest Realty Services (PSRS) is one of the largest privately-held commercial mortgage banking firms in the Western United States. Our funding sources include major life insurance companies, banks, credit companies, CMBS and institutional investors.

Access to diverse capital sources insures a high level of success in arranging commercial real estate loans, apartment loans, mezzanine loans, and equity transactions that our clients have come to expect. Our long-term lending relationships give us greater latitude in solving problems and closing loans in a timely manner.  After the loan funds, our experienced, in-house servicing team handles many issues such as assumptions, lease approvals, payoffs, insurance and many other similar matters.

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