Now May Be the Time to Refinance Real Estate Loans

This may be the time to refinance real estate loans, so says Arthur Adler, managing director of Jones Lang LaSalle Hotels, a lodging-industry advisory group. The most commonly used index for such loans is the ten-year Treasury, which has dropped below 6% since April, almost a full point below May when rates spiked. During the last few years, the index has experienced some volatility due to the Asian currency crisis, inflationary worries and fears about disruptions that may have resulted from the Y2K software problem. Still, the Treasury remains the bellwether for real estate loans.

The index reached a low of 4.5% in October 1998, but has risen steadily. Six months ago, it peaked at 6.8%, but since then has fallen, reaching 5.77% on August 14. That decline is attributed to moderating inflation. .