WHY ARE TREASURY RATES CLIMBING?
WHAT IT MEANS FOR CRE LENDING?
Higher 10-Year Treasury Rate Impacting Lending
- The 10-year treasury rate climbed about 120 bps in the last 100 days, applying upward pressure to CRE lending rates
- Single-family mortgage rates have climbed above 8%, reducing home sales to its lowest level in over a decade
What is Driving Treasury Yield Movements?
- The Fed began the process of selling off securities in 2022, reducing the price of securities while raising the yield
- Compared to the 10-year average, the U.S. issued triple the amount of debt over the last 6 months
Eyes On Congress To Avoid Credit Downgrade
- If the government can avert a shutdown, the U.S. credit rating should remain stable and limit upward pressure on treasury and lending rates
*Through October 11
Sources: Marcus & Millichap Research Services, Federal Reserve
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