Interest Rate Update – August
2019 has been a rollercoaster for the 10-year benchmark US Treasury (US10Y), however, the rate has dropped in greater increments then it has recovered. Any stabilization and or recoveries in the US10Y rate in 2019 have been brief. Closing today (August 22, 2019) at 1.61%, leaves the rate more than a full 1% below the year-to-date high of 2.78% set back in January. Even if rates continued their downward trend through the remainder of 2019, there isn’t a lot of room left to drop.
Now is a great time to evaluate your current commercial loans to see what interest saving could be attained, and whether or not those interest savings exceed pre-payment and refinance costs. With uncertainty about The Fed’s plan going forward, now would be a great time to speak with your broker to discuss these historically low rates.