NorthMarq News: Mid-Year National Multifamily Report, Capital Corner and August Economic Commentary

Capital Corner: Rates remain low, offering pricing benefits from all lenders
As the capital markets try to settle into a rhythm or some understanding of our ever new “normal,” many lenders are becoming more creative in securing new business. Borrowers are reaping the benefits with better pricing, longer-term options, and new opportunities from lenders.

Key points as summer 2020 comes to a close:

• Rates are low
• Terms are attractive
• While borrowers are trying to decide if rates will ever get lower or if they will go up in the near future, there is some risk associated with waiting too long. We see some uncertainty from declining collections, delayed school openings, and the upcoming election.

Read the full story.

Mid-Year 2020 National Multifamily Report
The first half of 2020 has proven to be one of the most volatile periods in recent memory. During the first two months of the year, the economy and the multifamily markets were performing quite well. Beginning in March, extreme levels of market disruption arrived suddenly and unexpectedly in the form of COVID-19, altering both the current landscape and the short-term outlook. Read the full story.

August Economic Commentary: Momentum Slows as CARES Act Supports Expire
The fiscal response to the recession is running out of steam just as the rising virus case count has started to slow the pace of the recovery. The improvement in economic activity during May and June was largely the result of the unprecedented support provided to consumers and businesses through the CARES Act that was passed at the outset of the pandemic crisis in late March. The inability now for Congress to agree on the appropriate extension of benefits is creating uncertainty and will likely exacerbate the slowing economic momentum that became apparent in late July. The importance of continued fiscal support should be evident from the economic data discussed below. Read the full story.