Interest Rate Increase Adding $420,000/Yr In Expense! Will Low Interest Return?

[William Coet]

With interest rates on multifamily having gone from high 4s to high 6s the buyers expenses will be higher now than they were a year ago.  A potential seller I know is considering whether or not rates will come down or if they should sell now and take a hit on sales price.

Will multifamily interest rates return to the 4s and low 5s in the next couple of years?

Thanks!

[Sam Yin]

@Scott E.

I been seeing the same. Rates have continued to adjust downward. I think commercial rates have ticked down again this week. Average commercial rates are around 5.5% to 5.7%, depending on what you are buying. Also depends on thresholds, over/under $1M, over/under $3M, $10M, $30M, etc... At least that's what I have been able to find from Leanders locally. This is for purchases out of state as well, not just local to CA.

I think the size of your loan also factors in. An another local investor just got a loan at 3.5% but it was for about $50M.