SBA Hot Topic Tuesday – Secondary Market Prices Drop After a Historical High
August 9, 2022
Delaney Sexton
Contributing Editor
SBA Hot Topic Tuesday – Secondary Market Prices Drop After a Historical High
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While investors are likely satisfied with the new favorable conditions on the secondary market, lenders are now seeing a decline from the great secondary market conditions they experienced throughout the previous year and a half.
Last year, the secondary market reached prices of 122.65 for a 25-year maturity period, 120 for a 20-year maturity period,117.25 for a 15-year maturity period, 116.38 for a 10-year maturity period, and 110.25 for an 8-year maturity period.
After these record-breaking highs, secondary market prices saw a drastic fall. Loans with a 25-year maturity period dropped by nearly 8.5% since September of last year. All loans from an 8-year maturity to a 25-year maturity saw similar and proportional drops.
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The SBA 7(a) secondary market prices now range from 107.5 to 112.5 depending on the loan’s maturity.
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For SBA 504 1st mortgages, the variable rate is 5.5% as of August 8, 2022. The par rates for 5-year fixed to 25-year fixed rates range from 4.82% to 5.5%.