Last Thursday’s stock market sell-off was a key factor in driving mortgage rates to the lowest levels in more than a month. More broadly, tech stock jitter have clearly correlated with multi-week trend toward lower rates that began in mid-October. As such, any time we see a pronounced bounce in stocks, we might be somewhat concerned about a similar bounce in rates. Stocks definitely bounced today with both the S&P and NASDAQ retracing more than half of the losses seen last Thursday. Mortgage rates dropped 0.05% on Thursday, but are only 0.01% higher today. One potential consideration is that oil prices continued even lower and that drop corresponded with lower bond yields at times. The average top-tier 30yr fixed rate rose to 7.18%–the second lowest reading since September 14th.
Simon Nearing $555M CMBS Package to Refi Dadeland Mall in South Florida
Simon Property Group and Prime Property Fund are closing in on a $555 million commercial mortgage-backed securities debt package to refinance the Dadeland Mall in suburban Miami-Dade County. Wells Fargo, Bank of Montreal and J.P. Morgan Chase Bank are originating the 10-year, fixed-rate, interest-only loan, according to Fitch Ratings. The agency valued the 1.5 million-square-foot…
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