Financial Market Summary:

• The Federal Prime Rate is now at 7.75% up from 7.5% in December. In March of 2022 the Prime Rate was 3.5%! The last time the Prime Rate hit 7.75% was 16 years ago in September 2007.
• The Secured Overnight Financing Rate (SOFR) is now at 4.66% up from 4.3% one month ago. The forward-looking 12-month term SOFR rate is 5.34%, meaning the market expects the rates to continue to rise. (Construction Loans are typically priced between 3.00 to 4.50 above SOFR which would mean a rate today of between 7.66% to 9.16%)
• The United Stated Federal Funds Rate is now at 4.75% up from 4.5% in February, with more increases on the horizon this year.
• United States Annual Inflation Rate: the Fed’s stated goal is to keep raising rates with the goal of bringing the inflation rate to 2%. The current inflation rate is 6.4%. This has been trending down since June 2022 when it was at a 20-year+ high of 9.1%. The last time the inflation rate was sub 2% was February 2021 at 1.7%.
• The US 1-Year Treasury Rate is now at 5.05%. Last year at this time that rate was 0.99%.
• Mortgage Rates: the 30-Year Fixed Rate is now at 6.85% and the 15-Year Fixed Rate is 6.25%.

Recent Development News:

Neighborhood Spotlight - Astoria.

1. Construction Loan: Cantor Fitzgerald and Silverstein arranged a $165 million construction loan from Banco Inbursa for the development of a 354-unit multifamily property located on a 63,000 square-foot lot in Astoria. The development allocates 25% of the rental units as affordable housing and will include 25,000 square feet of retail. Silverstein Properties, developer for the project, commenced construction in Spring 2022 and foundation work is nearing completion. The building is expected to welcome residents in Spring 2024. This is the 1st of a larger project centered on five blocks at the intersection of Steinway Street and 35th Avenue, the total plan “Innovation Queens”, includes 2,700 units of mixed-income housing – 700 of which will be permanently affordable – as well as 200,000 square feet of retail.
2. Construction Loan: Ponce Bank issues a $25 million construction loan to FBL Development at 31-16 21st Street in Astoria, Queens for a 40,532 bsf site.
3. Development Site Sale: The sale of 47-07 Broadway in Astoria for $11.1 million. This is a 27,258 sf parcel of land in an R6B Zoning District with a C1-3 Overlay.