McCallum’s Musings on the Market – 2/25/2026

McCallum’s Musings on the Market!

• The 10-year Treasury yield fell to 4.03% on Monday, Feb 23, 2026, touching a 3-month low.
• Recent reports from the Federal Reserve Bank of New York indicate U.S. consumer delinquencies to have reached their highest aggregate level in nearly a decade by early 2026.
• Consumer spending increased at an annualized rate of 2.4% in Q4 2025. It INCREASED because inflation continues to rise and U.S. households are being FORCED to spend more of their debased dollars to obtain goods and services.
• WASHINGTON, Feb 11 (Reuters) – The U.S. budget deficit will grow in fiscal 2026 to $1.853 Trillion – the Congressional Budget Office forecast.

McCallum’s Music Pick: À tout le monde by Megadeth

Case Study

• Manteca, CA
• Cash-out transaction on two Free & Clear office buildings
• 6.40% fixed interest rate for initial 5 years; 10 year loan term
• 70% of total project costs

John McCallum, Borrower’s Advocate, completed this $600,000 unrestricted cash-out loan transaction for two office buildings. The owner paid cash for the acquisition of the vacant property just 12months prior. Having completed property & tenant improvements, the owner sourced tenants to bring the property to 100% stabilized occupancy. The appreciated property value justified the $600,000 loan amount equal to 75% of total project costs. In this market, lending to office properties are still challenged given lender legacy constraints. The property owner required the cash-out funding to accommodate his next project. Known for representing owners and investors in obtaining the best financing solutions, John McCallum sourced and closed the loan to provide the owner another opportunity to grow the real estate portfolio.

Featured Article

HOUSEHOLD DEBT DELINQUENCY RISES; NEW HOME SALES DECLINE; LATEST TARIFF UNCERTAINTY JOLTS MARKET: “The housing industry will need plenty of boosts if it expects to salvage a spring homebuying season,” said Selma Hepp, chief economist at housing data firm Cotality, formerly known as CoreLogic.