Numerous real estate capital market information sources are available, both directly and indirectly. However, shown below is a list of the Institute’s recommended websites includes real estate industry trade groups, publications, market research organizations, governmental agencies and business media outlets focused on covering real estate capital markets in the United States. The websites are segregated into single key categories, although numerous sites will have overlapping classifications (e.g., a trade group provides market research and news services).
MORTGAGE RATES « "Current permanent loan rates for income-properties start at 5.5%. Dial 773-CAPITAL (227-4825) for the Real Estate Capital Rateline for daily update." »
Chicago, Illinois, August 2, 2010 – Mid-year key economic indicators point to a more moderate recovery. During July, benchmark treasuries moved within a quarter point range and settled lower by about 20 basis points for five-year notes, while ten-year notes moved down less than 10 basis points, respectively. Mortgage spreads continued to barely tighten, netting slightly lower overall rates.
Throughout the first half of the year, lenders have been scouring the realty markets in search of performing projects with stabilized cash flow. Yet limited opportunities may be found. Simultaneously, scant funding options are available for projects without cash flow performance. Few capital sources reach for deals on longer-term cash flow projects, unless substantial equity exists.
With mortgage rates starting in the mid-4% range for longer term debt of seven years or greater, borrowers are migrating from floating-rate to fixed-rate debt. As rates are at historical lows, focus on loan terms - other than pricing - include the following:
Loan-to-value sizing dominates underwriting funding limits, as debt service coverage ratios are relatively high due to low rates
Subordination and non-disturbance agreements are more important to lenders as various players in the capital stack (e.g., mezzanine and preferred equity) take on new positions in situations where developer equity is reduced or eliminated
Real estate tax and insurance collection conditions are more stringent, with lenders seeking tighter control in case of default
Property insurance carriers must meet higher standards due to default within the industry
Unauthorized transfers are no longer covered by most title policies, adding additional recourse carveouts
Skip Perry, Real Estate Capital Institute advisory board member notes that "lenders want quality loans, and are willing to sacrifice yield in return for safety of principal." He suggests, "conservatively underwritten income-property loans are precious commodities capturing premium pricing and terms.”