Drop in Treasuries Puts Renewed Focus on Rate Floors
August 27, 2019 | Beth Mattson-Teig | National Real Estate Investor
A year ago, most people thought interest rates were moving up. The reality has been just the opposite. Treasuries have plummeted and pulled lending rates down with them.
Borrowers that have been enjoying an extended run on favorable rates are seeing rates that once again are near historic lows. The 10-year Treasury has dropped roughly 110 basis points this year to hover between 1.52 and 1.60 percent. “We never fully made it back to a normal interest rate market since quantitative easing and since the end of the last cycle,” says Tim Milazzo, co-founder and CEO of StackSource, an online commercial real estate lending platform.
