📉 The U.S. Treasury Bond Market Just Made History

Treasury bonds are now in a 61-month drawdown, the longest in U.S. history.

Why does this matter for real estate? Because Treasuries are the benchmark for borrowing costs across the economy, especially mortgage rates. When yields stay elevated for this long, the ripple effects are felt everywhere:

🏡 Mortgage Rates Stay High → Homebuyers face higher monthly payments, slowing affordability.
🏢 Cost of Capital Rises → Developers and investors pay more for financing, tightening margins.
📊 Valuations Adjust → Cap rates rise as investors demand higher returns, pressuring property values.
💸 Cash Flow is King → Income-producing assets with strong fundamentals outperform speculative plays.

For the real estate industry, this environment means less reliance on appreciation and more focus on disciplined acquisitions, conservative leverage, and stable cash flow.

Long drawdowns like this reshape entire markets. Those who can adapt and structure deals around today's cost of capital, will be positioned to capture opportunities others overlook.

👉 If you're navigating today's market and want to discuss strategies, acquisitions, or financing approaches, let's connect.