Your weekly guide to finance from an expert

Starting the New Year Off Right

Happy holidays from Empyrean Funding, INC.

While the economic news has been somewhat upbeat, rates continue to drop. Going into year end – interest rates look like they may close at the best levels in 2014!

With positive economic reports, a strengthening economy and a rising stock market, most experts are somewhat dumbfounded as to why rates are dropping? For years now, I have been aggressively stating that rates will not rise until the world recovers and that’s clearly not happening. The 10 year German Bond is currently paying .75%. With the European economy struggling and the continued threat of deflation, there is no reason for U.S. 10 year bonds to pay 2.25% as our economy is certainly safer than Germany.

I look for continued weakness and a further easing worldwide, which will push rates down in 2015. Now is a great time to look at your commercial and residential real estate loans in preparation for the new year. Starting the process now will put us in a position to take advantage of any significant drops at the beginning of the new year.