Particularly when compared to the option of US Treasuries yielding you zilch, which is the only real competition when it comes to an asset class being able to handle this volume of investment.Secondly, they're massively overpaying only in select markets.

I don't know enough about treasury bills but I assume that's an option?

Most simply put, all interest rates on loans are affected by the US Gov't 10-year treasury bond, which is viewed as a risk-free investment.

This loan is about (5) years into a (10) year pre payment penalty of 10%, carries a current rate of 4.76%, adjusts next April (5 year treasury + 2.76%, then static for the next 5 years). 

There's very little profit and you're betting on interest rate risk as well as creditworthiness of tenant AAA vs BBB, etc.Are you looking to park cash and take a slight premium to Treasuries?

Right now, there are Treasuries that are yielding 4.7% and AAA corporate bonds at 5% where there is no work, and the risk is either zero or extremely low. 

Surely they will pay $1,000,000 for that cash flowing cabin…However, as mentioned before, that investor now has a guaranteed 4 percent treasury to park their money in for a locked in 40k profit sitting on their couch (no VRBO or AirBNB App needed)…there is a large opportunity cost now, of which did not exist for the past several years until now, so these prospective cash buyers are drying up, as they should.

The fed publishes the projected targets and raised the end of year projection from 5.1% to 5.6% and upped next year from 4.3 to 4.6%Rates may go down because of historical delta between 10 year treasury is off but if people think rates will go down to 3% again on mortgages they most likely will be waiting a long time

First of all, the 10-Year Treasury, which drives rates, has been spiking, so you're investment rates are going to be in the 8s, not the 5s.

The Fed has multiple years of pushing before unemployment balloons in this country. 4) Pundits forecasting mortgage rates declining fundamentally don't understand the debt markets: The basis of most pundit forecasts for mortgage rates coming down in 2023 is that the spread between the 10-year treasury and current rates is very high - about 300 bps, vs an average of 180 bps.