๐ Treasury Yield Updates
5-Yr UST Yield: 3.842%
10-Yr UST Yield: 4.268%
Why is this important?
- Treasury yields donโt set private lending rates but they set the minimum return expectations for capital. It is important to understand that there is a reason rates are where they are.
- Typically for every 20 basis point swing, rates will move 1/8th in the corresponding direction. In the last week rates have held steady with no real movement in any direction.
๐ Industry Headlines
โข Rent-To-Own: High amount of unsold inventory (houses), builders have introduced an idea to have renters pay above market rent to escrow money to be used as a down payment on the home they are renting. ๐ What You Should Know (Opinion)
Though we are seeing a discount among sales for buyers, we are also seeing a large majority of the buyers market being excluded from transactions solely due to the high starting price of these homes. When the price starts high, a whole group is ultimately excluded from the market which in turn creates a housing surplus of high priced homes. This is what gives that smaller group of buyers bargaining power.