The spread between 5-year posted rates and the 5-year bond yields is now the most it’s been since October, and 45 basis points above its 10-year average. As a result, fixed rates should drop a bit further from here.
Here’s a look at rates currently being quoted on the street for AAA-quality borrowers:
1-year Fixed: 2.64% (In general, 1-year pricing is poor relative to the cost of funds. It should improve soon.)
3-year Fixed: 2.99% (Through select brokers)
5-year Fixed: 3.79% (Applies to “quick closes.” 6-month rate holds can be had for just 3.99%.)
50/50 Hybrids: 2.97% (i.e., Half fixed and half variable; applies to quick closes.)