A month ago we were able to quote commercial mortgages with excellent credit in the mid 5’s low 6’s, even though treasuries have actually dropped since then, money has gotten much scarcer so banks are charging more to borrowers, simple supply and demand. Rates have actually gone to the mid-high 6s to the low 7s on good credit now. That is what the market is yielding. I know that most of our loans are commercial jumbo, but that the lack of money is going to trickle down and affect the residential lending markets and even though rates and treasuries are going to drop in the future, lending rates are going to go up, again…all about supply and demand.

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