McCallum’s Musings on the Market – 10/6/2025

McCallum’s Musings on the Market!

• The Federal Reserve dropped rates by 0.25% — a positive sign for borrowers, with expectations of another 0.25% cut within the next 60 days.
• The 10-year Treasury Index declined 0.40% from July 18 to September 16 — also good news, as Treasuries drive lending benchmarks and lower yields reduce borrowing costs.
• Bridge loan interest rates have compressed, now reaching as low as 8.99% for lower-leverage transactions. While still high compared to stabilized debt, this is an improvement for short-term financing.
• Permanent interest rates for Industrial and Multifamily assets are trending in the high 5% to low 6% range, a favorable shift compared to the +/-7% levels seen earlier this year.

The Q4 year-end race is on. Rates are lower, the stage is set, and the pit is open for investors and developers ready to move before the tempo shifts again.

McCallum’s Music Pick: Whiplash by Metallica

Case Study

• Sacramento, CA
• 10,000 SF
• Industrial
• $1,775,000

John McCallum, Borrower’s Advocate, worked with the owner of an industrial portfolio in Sacramento to refinance out of an expensive hard money loan while also securing cash out. Known for representing owners and investors in obtaining the best financing solutions, John arranged a 10/25 loan structure sized to a 1.35 debt coverage ratio that significantly increased property cash flow. He also coordinated the refinance of three additional investment properties under matching terms, resulting in nearly $1,000,000 in net cash proceeds to the owner.

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