Strong jobs report in December encourages the Fed to taper $10 billion of the $85 billion monthly bond buying program. The effects of the taper are evident in the rise of the 10-year treasury which has risen 1.08% in one year. From the lows of last year, interest rates have increased an average of .65%. Current 10-year treasury rate stands at 3%.
The rise in interest rates have been seen across the board in terms of financing we have obtained for clients in the last 2 years. In 2012, we saw interest rates for tax-exempt private placement loans as low as 2.18% for 7 years and as high as 2.89% for 7 years in 2013. 10-year swap all-in rates have also been on the rise. In 2012 we saw swaps at 2.6% for 10 years and in 2013, swaps rates increased to 3.2%. Ultimately, rates are on the rise which was inevitable as the economy and employment recovers from the recession in 2008. Although 2012 tax-exempt rates were at historical lows, the 20 year average shows rates are still significantly lower than just 5 years ago. Still a great time to refinance if you haven’t done it in the last 2 years.
Happy New Year to everyone! Hope you all had a great holiday season. In addition to our San Francisco Bay Area office and our Sacramento office, we are proud to announce the opening of our Seattle office in summer of 2014!
