Last Tuesday, the buzz about the .75% cut in the Fed's rate (also called the prime) started. People got on the phone to their mortgage lenders asking if now the time to refinance their home loan is. As a result, there is a lot of information about what that rate cut means to residential loans. However, I've seen nothing about what the cut in the prime means to commercial loans, especially not in simple terms.
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Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner
Sheryl, The biggest influence on commercial loan rates is the liquidity of commercial lenders. Right now they seem to have plenty of money so rates are relatively low. If residential rates go much lower then commercial might attract for money so those rates will soften some too.
Bill Roberts
Jan 26, 2008 02:51 AM
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