"The current run-up in mortgage rates…within the next two to three months, will make the acquisition climate better for the better financed companies as opposed to the more highly leveraged buyers," Sweet says.
Sweet adds it is too early to tell if what he has seen in a smattering of potential deals is a start of an industry-wide trend, or whether it will translate into higher capitalization rates being paid for assets that are on the market. Meanwhile, AMLI Residential continues to find the acquisition market "very difficult" for properties that have been widely marketed.
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