Rise in Interest Rates Predicted
Developers and real estate investors held back by interest rate concerns should go through with their proposed deals now, according to one commercial mortgage broker.
Hal Rose, senior real estate finance officer with Coldwell Banker Real Estate Finance Services, said the outlook for fixed-rate loans for the rest of 1988 “is uncertain at best.” But the mortgage market appears to be tightening, he said, and that could push rates higher.
“Real estate developers and investors fearing (the) loss of optimum interest rates and the availability of funds must quickly select loans today, based on reasonable returns,” he told a group of lenders at a conference sponsored by UCLA Thursday.
The abundant supply of mortgage money might soon disappear, Rose said, especially if large institutions begin putting more of their money into other types of investment vehicles.
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