The Meyers Report: Economic Notes

20130624_swaprateIndicative of most other interest rates, the 10-year swap rate rose dramatically this past week.

The most significant of the economic releases due this coming week is Thursday’s report on consumer spending and income in May. Although the numbers are almost a month old, they represent the most comprehensive view of consumers’ behavior. We the report to show consumer spending and income rising at roughly a 3% pace and real spending at about a 2% pace. Hence, little change from prior reports.

Commercial Real Estate Lending

While we are still in an era of low interest rates, the coming rate hikes are here now. In the past 7 weeks, Multi-family commercial loans have risen by 0.7% to 1.2%-age points, and they are going higher, HUD 223(f) and 221(d)4 rates are up to 4.2% and 4.9%, respectively. Fannie Mae 30-, 10- and 7-year loans are up to 5.8%, 5.1% and 4.5%, respectively. SBA 504 loans, which generally are priced once a month are 4.3%, but are projected to climb to about 5% by July 10th.

30-year fixed home mortgages costs also have rise, to 4.5% by June 23, 2013, up a full point from 60 days earlier.
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Rates are subject to change without notice and are subject to property and credit qualifications. For details on any of these and other programs, contact Gary Meyers at 847-580-4260 or email: gmeyers@ccfdeals.com.

Fuel Prices

Summer is again the season of rising gasoline prices when refineries switch their blends, which costs more, but results in a bit better mileage. GasBuddy.com is reporting average costs across the country by county. California, which has as much oil available as anywhere in the world, leads the nation in high prices, because of regulations, formula restrictions and their dislike of drillers, refineries and pipelines. The cheapest fuels are in the Gulf states, where the petroleum is and the local folks are more hospitable to the energy industry.

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Learn more about Commercial Corp Finance or read past reports.

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