With Labor Day marking the end of summer, buyers and sellers and borrowers and lenders are largely back to work and focused on a strong close to the third quarter and an even stronger year-end. With interest rates on the rise, borrowers are trying to close financings as soon as possible to lock in long-term, cheap debt. With mixed economic data and opinions, buyers are trying to get into transactions and sellers are trying to get out of them.
- C&W Research said in their report last week that as we enter the final four months of the year, the performance of the global economy is continuing to exhibit improvement. They believe this bodes well for 2014. It is likely that, for the first time in seven years, every major region of the global economy will expand in the coming year.
- 10-year US Treasury yields are up approximately ~15 bps from one week ago to the ~2.90% after touching 3.00% last week on mixed economic data regarding the US recovery which will either lead the Federal Reserve to start tapering their monthly purchases or delay the move.
- MBA reported last week that delinquency rates across every major investor group declined in the second quarter. The quarterly decline in the delinquency rate for CMBS (74 bps to 7.81%) was the largest on record, and the delinquency rate for loans held by life companies (0.08%), banks (2.16%), and GSEs (0.28%/0.09%) remain low and fell lower.