10Y TREASURY, IT'S IMPORTANT. |
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The 10Y Treasury. A story in three parts. 4.35% August 24th- Concern and Caution. “While not a disaster for commercial real estate, it would cause pain for some investors and some losses in the banking sector.” 5% October 23rd- Fear and Doom. “The rapid rise in Treasury yields may accelerate an already weakening economic picture that is masked by higher rates.” 3.998% December 13th- Rainbows and Butterflies. “This is a green light for investors." |
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Why the 10Y Treasury is important. The 10-year Treasury yield is the North Star for real estate buyers, sellers, and investors alike. The 10-year Treasury yield is used as a proxy for mortgage rates. While they don’t always move in lockstep, when the 10-year yield goes up, so do mortgage rates. Conversely, when the 10-year goes down so do mortgage rates. Lastly, the 10-year Treasury yield is a baseline against which the risk of other investments is assessed. This too can influence decisions of real estate investors. The 10-year Treasury yield can influence the cost of borrowing, investor behavior, and overall economic conditions. A lowering 10Y Yield = increased confidence in the market, easing conditions for borrowers, and subsequently more deal flow. Higher yields = higher rates, more caution, and less deal flow. |
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Equity, Equity, Equity. I have been sitting with the “trickle-down effect”…the housing impact of course, but also the future of spending, the next investable ideas/products/areas, the generational wealth transfer from Boomer parents to Gen X/Millennials/Gen Z children, and the future of work… Rates down, applications up… buckle up! 5 Acres. MCM. Whewww…Get Away Home heat! Just 2hrs from NYC. Tis the Season. |
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575 MADISON AVENUE, NY, NY 10022. 212.891.7000 © 2019 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. IF YOUR PROPERTY IS CURRENTLY LISTED WITH ANOTHER REAL ESTATE BROKER, PLEASE DISREGARD THIS OFFER. IT IS NOT OUR INTENTION TO SOLICIT THE OFFERINGS OF OTHER REAL ESTATE BROKERS. WE COOPERATE WITH THEM FULLY. EQUAL HOUSING OPPORTUNITY. |
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