Sentiment-Based Market In Wait-And-See Mode On Rates, Tapering

<p><span style="font-weight: 400;">The market is sentiment-based right now, and that means that it’s difficult to predict what might happen in the coming weeks and months.</span></p> <p><span style="font-weight: 400;">Explains Thirty Capital Analyst Jay Saunders: “We're hitting our employment goals. We're hitting our inflation goals. At this point what changes the market is sentiment. And that's really, really, really hard to put timing on.”</span></p> <p><span style="font-weight: 400;">Jay explained that even when the market changes in this kind of environment, it’s actually hard to pinpoint exactly what brought about the change.</span></p> <p><span style="font-weight: 400;">“The long end of the curve is getting a lot less liquid right now from an investor perspective,” he continued, adding that there is certainly some concern over rates.</span></p> <p><span style="font-weight: 400;">Today’s roundtable episode included updates on the types of deals Thirty Capital is working on, and overall market activity. </span></p> <h1><span style="font-weight: 400;">Predicting the Ten-year</span></h1> <p><span style="font-weight: 400;">Since the start of CRE Capital Markets Report, the team of analysts, led by Thirty Capital CEO Rob Finlay, has been refining its predictions for the Ten-year rate for the close of the year. </span></p> <p><span style="font-weight: 400;">They believe that for a two-per-cent Ten-year to be realized, employment will really need to pick up and inflation will need to slow down somewhat. </span></p> <p><span style="font-weight: 400;">Of course, no one can be sure that these two things will occur, and so the team's revised forecast for the Ten-year rate towards the end of the year is now between 1.50 and 1.75. </span></p> <p><span style="font-weight: 400;">Fed tapering is on the horizon, while the analysts don’t foresee a rate hike until the end of the year. </span></p> <h1><span style="font-weight: 400;">When Rates Move, Volatility Will Be Severe</span></h1> <p><span style="font-weight: 400;">Rob ra