McCallum’s Musings on the Market – 1/22/2026

McCallum’s Musings on the Market!

• Treasury Indexes are showing signs of volatility – currently the 10yr Treasury sits at 4.29%.
• The start of 2026 has shown a significant increase in loan requests – both refinance & purchase transactions.
• The Federal Reserve implemented 3 rate cuts in September, October, and December 2025. Expect two additional quarter-point reductions in 2026, one more than Fed officials’ median forecast.
• While the Fed is easing, it won’t solve fundamental issues with current DSCR tests and higher cap rates. NOI continues to be impacted by ever-increasing operating costs & CAPEX.

McCallum’s Music Pick: Stargazer by Rainbow

Case Study

• Sacramento, CA
• 11,200 SF
• Industrial property
• 10.00% fixed interest rate for 1 year
• 70% of purchase price

John McCallum, the Borrower’s Advocate, completed this $910,000 purchase financing requirement for a vacant industrial property. The property featured 4 parcels in the central city – ideal for many owner-users or for redevelopment. Known for representing owners and investors in obtaining the best financing solutions, John sourced and closed the loan within 3 weeks of the purchase agreement to provide the owners another opportunity to grow their industrial real estate portfolio.

Featured Article

FED CHAIR SEARCH BECOMES HUNT FOR ELUSIVE UNICORN: With the DOJ launching a criminal investigation and issuing subpoenas to the Federal Reserve, the search for a new Fed Chair may be prolonged. Ongoing pressure to cut rates risks further currency devaluation, higher inflation, and an elevated chance of financial crisis.