Good Time To Enter The Market For Longer Term Deals

<p>For investors who are looking for longer term deals, now is a good time to get into the market.</p> <p>In Thirty Capital’s CRE Capital Markets Report today, Analyst Bryan Kern said the 10-year has pulled back to about 1.45, which is a good opportunity for people to get into the market for long-term financing.</p> <p>RANGE-BOUND TRADING</p> <p>Clients are working within a daily narrow basis point band at the moment. Analyst Jeff Lee says: “Even though we are five to ten basis points less than the prior range that we've seen, we're still kind of within a narrow 20 to 25 or 30 basis point band here.</p> <p>“Talking to clients, we're hearing from people that they're expecting it (an interest rate increase) . . . it's just a matter of how fast and when.”</p> <p>SHORT-TERM RATES EXPECTED TO REMAIN LEVEL</p> <p>Short-term rates aren’t expected to move anywhere soon. The Fed will meet on Tuesday or Wednesday this week, but Thirty Capital does not expect a short-term rate hike until 2023, two years from now.</p> <p>LIQUIDITY PUSHING UP INFLATION</p> <p>Tapering is still being discussed but the question is when it will begin. There is so much liquidity in the market right now, that it’s expected soon. The Consumer Price Index has shown a 5% increase in the past month, which indicates that inflation is running “really hot,” says Bryan.</p> <p>UNEMPLOYMENT IN SPOTLIGHT AS BENEFITS END SOON</p> <p>Unemployment numbers are still the focus for economists because unemployment benefits will cease at the end of June or early July in a lot of states. Federal unemployment benefits run out at the end of September.</p> <p>Says Analyst Jason Kelley: “There are 23 states that will cut off benefits in the next six weeks. Some of them started over the weekend.</p> <p>“I think it’s an economic experiment over the next quarter to see if those states are having a different outcome than other states that are leaving benefits on, because it's going to run through September, unless the state makes the change,” notes Jason. “We'll get to see