Please wait while the page loads...

Provided By:

Southern California Multifamily Real Estate Advisor - MikeLembeck.com

THE COST OF BORROWING

LOAN/INVESTMENT TERM CURRENT 5 WKS. AGO 6 MOS. AGO REMARKS
Multi-family; becomes ARM after fixed ends; 1st TD Fixed 5 yrs
Fixed 10 yrs
4.35%
4.625%
4.50%
4.85%
3.70%
4.05%
Loan amts of $1 M+ 1.20 debt coverage ratio; 75% LTV;
Fannie Mae conforming (1 unit) 1st TD owner occ. 30 Yr fixed 4.875% 5.50% 3.19% Rate based on ~ 1 point fee; 1unit: $647,200; 2: $828,700; 3: $1001,650; 4: $1,244,850;
Income Property ("A" Paper) 1st TD 5-10 Yr fixed 5 - 5.75% 5.125 - 5.875% 4.75 - 5.125% $1,000,000 minimum
Income Property ("B" Paper) 1st TD 1-10 Yr ARM 7% - 7.50% 7.25% - 7.875% 6% - 7% $200,000-$2,000,000
2-4 Unit Residential 1st TD non-owner occ. 30 Yr FIXED 6.125% 6.375% 3.99%  ~ 1.25 point loan origination; 75% LTV purchase;
Apartments (5 units+) 1st TD 30 Yr ARM 5.43%  4.56% 3.06%  Based on current one year treasury + 2.35 margin
US Treasury Securities Yields 5 Yr
10 Yr
30 Yr
3.16%
2.99%
3.16%
3.45%
3.32%
3.31%
1.55%
1.76%
2.10%
As of 07/18/22 , 2 Yr Treas = 3.17% 
Bank Prime Rate (Wall St Jrl) Daily 4.75% 4.00% 3.25% Last change 06-15-22 (up 75 basis points)
Federal Reserve Discount Rate Daily 1.75% 1.00% 0.25% Available to depository Institutions only
Federal Funds (effective rate) Daily 1.59% .83% .08% Overnight rate
FHLB 11th District Cost of Funds Monthly Change NA NA NA
Certificates of Deposit 1 month
6 months
NA
NA
NA
NA
NA
NA
Rates in secondary market
Secured Overnight Financing Rate “SOFR” 30 day avg
90 day avg
1.01%
.66%
.58%
.33%
.05%
.05%
Major corporate borrowers only
L.I.B.O.R. 1 month
6 month
2.12%
3.31%
1.28%
2.31%
.11%
.44%
London Interbank Offered rate
Treasury Bills, Yield 3 month
6 month
2.29%
2.91%
1.60%
2.18%
.16%
.32%
As of 07/18/22

Treasury Security Yield Adj/constant maturity 1year
A) Current
B) 12 mo avg

3.08%
.86%

2.81%
.64%

.53%
.10%
As of 07/18/22 12 mo avg = 12 MAT
Money Market Funds (brokerage house) Daily .11% .08% .07% Annualized yield
Checking Plus accounts (Banks & S&L's) Daily NA
NA
NA
NA
NA
NA
Bank of America CitiBank
Gold (per ounce) Daily $1,710.20 $1828.41  $1,840.97 As of 07/18/22
Oil (WTI crude) per barrel Daily $102.60  $121.44 $83.63  As of 07/18/22
Dow Jones Industrial Avg Daily 31,072.61  31,880.2 30,516.74 As of 07/18/22

Rates effective thru Fri, Jul 8, 2022 (unless otherwise designated)

Consumer Price Index (US consumers), Month of May 2022: Up 1.37%; last 12 months: Up 9.1% (296.311)

CURRENT INDEX RATES
5-Year Treasury 3.97%
7-Year Treasury 3.99%
10-Year Treasury 3.99%
30-Day Avg. SOFR

5.35%

Term SOFR

5.35%

Multifamily
FREDDIE MAC—CONVENTIONAL
TERM LTV DSCR SPREAD RATE*
15-Year 80% 1.25x 175-200 5.75%-6.00%
10-Year 55% 1.55x 145-155 5.45%-5.55%
10-Year 65% 1.35x 150-165 5.50%-5.65%
10-Year 80% 1.25x 160-185 5.60%-5.85%
7-Year 55% 1.55x 145-160 5.45%-5.60%
7-Year 65% 1.35x 150-170 5.50%-5.70%
7-Year 80% 1.25x 165-190 5.60%-5.85%
5-Year 75% 1.25x 160-185 5.55%-5.80%
10-Year ARM 80% 1.25x 220-245 7.55%-7.80%
FANNIE MAE—CONVENTIONAL
TERM LTV DSCR SPREAD RATE*
15-Year 65% 1.35x 155-220 5.55%-6.20%
10-Year 55% 1.55x 125-175 5.25%-5.75%
10-Year 65% 1.35x 120-195 5.20%-5.95%
10-Year 80% 1.25x 145-215 5.45%-6.15%
7-Year 55% 1.55x 120-175 5.20%-5.75%
7-Year 65% 1.35x 130-195 5.30%-5.95%
7-Year 80% 1.25x 150-225 5.50%-6.25%
5-Year 65% 1.25x 145-250 5.40%-6.45%
10-Year ARM 75% 1.00x 270-285 8.05%-8.20%
LIFE COMPANIES
TERM AMORTIZATION LTV SPREAD RATE*
5-Year 25-30 65%-75% 185-220 5.80%-6.15%
10-Year 25-30 50%-65% 155-190 5.55%-5.90%
10-Year 25-30 65%-75% 185-220 5.85%-6.20%
15-Year 25-30 65%-75% 185-220 5.85%-6.20%
15-20 Year Fully Amortizing 65%-75% 850-220 5.85%-6.20%
FHA—221( d ) CONSTRUCTION/PERMANENT
TERM AMORTIZATION LTV DSCR RATE*
40 40 85% 1.176x 5.90-6.20%
FHA—223( f ) REFINANCING
TERM AMORTIZATION LTV DSCR RATE*
35 35 85% 1.176x 5.45-5.75%
C M B S
TERM AMORTIZATION LTV SPREAD RATE*
5-Year 30 65%-75% 335-395 7.15%-7.75%
10-Year 30 65%-75% 270-320 6.65%-7.15%
Commercial
LIFE COMPANIES 
TERM AMORTIZATION LTV SPREAD RATE*
5-Year 25-30 65%-75% 180-215 5.75%-6.10%
10-Year 25-30 50%-65% 150-185 5.50%-5.85%
10-Year 25-30 65%-75% 180-215 5.80%-6.15%
15-Year 25-30 65%-75% 180-215 5.80%-6.15%
15-20 Year Fully Amortizing 65%-75% 180-215 5.80%-6.15%
C M B S
TERM AMORTIZATION LTV SPREAD RATE*
5-Year 30 65%-75% 335-395 7.15%-7.75%
10-Year 30 65%-75% 270-320 6.65%-7.15%

1. Minimum index floor of 0.50% for all fixed rate terms.

2. 15-year floor and 10-year index floor is 1.00%; 7-year index floor is 0.80%.

3. Before MIP of 0.25% to 0.60%     

4. Before MIP of 0.25% to 0.65%    

5. Most life company lenders have floors of 2.75% and above.    

6. Most life company lenders have floors of 2.65% and above.