Marcus & Millichap

Index Rates

Current Rates

Current Index Rates as of 4:00 PM ET 10/20/2017
3-Year Swap 1.93% 5-Year Treasury 2.03%
5-Year Swap 2.09% 7-Year Treasury 2.24%
7-Year Swap 2.21% 10-Year Treasury 2.39%
10-Year Swap 2.35% Prime * 4.25%
* Prime updated once daily.
Rate Chart

Capital Alert

Get the latest debt market information on terms and rates, including data from Fannie Mae, conduit spreads, Treasury and LIBOR indices, economic commentary and samples of recent transactions closed by Marcus & Millichap Capital Corporation.

October 19, 2017

Multifamily Loan Programs > $5 million

Fixed Rate Agency Lenders
Term LTV Interest Rates
5 Year 55 to 80% 4.20% to 4.62%
7 Year 55 to 80% 4.11% to 4.53%
10 Year 55 to 80% 4.25% to 4.67%
Portfolio Lenders*
LTV Interest Rates
55 to 75% 3.60% to 4.20%
55 to 75% 3.80% to 4.20%
55 to 75% 4.00% to 4.50%
*Rates indicative of national average. Act/360

Multifamily Loan Programs < $5 million

Fixed Rate Agency Lenders
Term LTV Interest Rates
5 Year 55 to 80% 4.10% to 4.65%
7 Year 55 to 80% 4.30% to 4.65%
10 Year 55 to 80% 4.60% to 4.80%
Portfolio Lenders*
LTV Interest Rates
55 to 75% 3.60% to 4.15%
55 to 75% 3.80% to 4.40%
55 to 75% 4.10% to 4.80%
*Rates indicative of national average, Act/360

Commercial Loan Programs

Fixed Rate Portfolio Lenders*
Term LTV Interest Rates
5 Year 55 to 75% 3.95% to 4.50%
7 Year 55 to 75% 4.10% to 4.75%
10 Year 55 to 75% 4.16% to 4.99%
15/15
55 to 75% 4.09% to 5.00%
Bridge Floating LTV Spread Over Libor
Stabilized 65% 250 to 425
Re-Position 80% 300 to 500
Economic Commentary

10-19-2017   While some news headlines may have produced anxiety bubbles in the equity markets this week, don’t forget we hit record highs and the Dow Jones industrial average is up almost 17% year to date. For the last three weeks, the 10-year U.S. Treasury has been trading within a stable range and is currently at 2.32%. The Labor Department’s survey of weekly jobless claims indicates they are at their lowest levels since March 1973. Analysts suggest that employers have little desire to reduce staffing amid a shortage of qualified workers. The capital markets have been particularly aggressive on lending to multifamily investments, led by Fannie Mae, Freddie Mac and bank options. It also appears that every week another debt fund enters the market for lending on transitional value-add redevelopment assets for both multifamily and commercial assets.

 

(*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions)
Recent Transactions
Multifamily
Round Rock, TX
$17,170,000
4.21% Fixed
5-yrs I.O.
12-yr term / 30-yr amort.
Multifamily
San Diego, CA
$5,985,000
3.65% Fixed
3-yr term / 30-yr amort.
Shopping Neighborhood
Colorado Springs, CO
$4,900,000
4.50% Fixed
10-yr term / 30-yr amort.
Office
Suwanee, GA
$3,100,000
4.45% Fixed
8-yr term / 20-yr amort.

For more information, contact:

William E. Hughes
Senior Vice President
Newport Beach
(949) 419-3200
William.Hughes@marcusmillichap.com
Richard Katzenstein
Senior Vice President/National Director
Manhattan
(212) 430-5100
Richard.Katzenstein@marcusmillichap.com
Terms, rates and conditions subject to change.