Brad Berton is a freelance writer based in Portland, Ore.
New adjustments to the government-sponsored enterprises’ lending caps portend an overall boost in apartment financing this year and double-digit growth over Fannie’s and Freddie’s record 2015 volumes.
With apartment transactions continuing to keep a torrid pace, industry analysts predict 2015 will go down as the most-active multifamily investment year ever.
Strong yields, value-add demand make the short-term financing mechanism increasingly popular as new lenders enter the field and spreads tighten.
Notwithstanding all the talk of the CMBS industry's rapid recovery—80-plus percent activity growth last year, with another 25 percent projected this year—apartment lending by Wall Street’s active conduit lenders appears to have slowed due to heated competition.
As the Federal Reserve tapers its rate-lowering bond purchases, what movement should borrowers expect ahead in the benchmark 10-year Treasury yield—and in turn long-term mortgage rates?