Greysteel Capital Markets Update | March 2020

  • On March 3rd, the Federal Reserve cut the federal funds rate by 50 bps, to 1.00%-1.25%, in an effort to stave off potentially damaging economic effects of the coronavirus outbreak.
  • The fear that coronavirus has or will become a global pandemic has triggered a flight to safety into Treasury bonds, driving yields down substantially in a matter of weeks. As a consequence, Fannie Mae is now implementing artificial Treasury floors to slow new loan origination in 1Q 2020.
  • HUD has officially waived its prohibition on refinancing new multifamily assets within three years of delivery.

How do these developments affect me? Please call your local Greysteel finance professional to discuss the potential implications on your commercial and multifamily real estate. If you have a loan on commercial or multifamily real estate featuring an interest rate higher than 4.50% or maturing in the next 18 months, or if you have a multifamily property in lease up and approaching 50% occupancy, contact a Greysteel finance expert to discuss your refinance options.