Kathy Anderson’s 2020 Market Forecast in RENJ
Kathy Anderson featured in Real Estate New Jersey Magazine’s 2020 Market Forecast Issue!
While SWAP contracts are not new, 2019 saw an increase in SWAP offerings as borrowers demanded longer fixed rate loans forcing banks to offer a SWAP option to compete. As we continued to educate our clients on the pros and cons of a SWAP, we found that borrowers who had previously rejected the concept, came around once they realized they could lock in at a much lower rate for a longer period of time.
In 2020, we anticipate the Fed to cut rates another .25 bps based on slow growth and the absence of a major tariff breakthrough, interest rates to remain stable within a range and SWAP products to gain in popularity. Banks will continue to offer floating rate products to hedge interest rate risk (construction loans) to their best customers and funds will bridge the gap, although at tighter spreads as competition in the private lending space increases.
Flip to page 28-29 for Market Forecast at link below!