It’s clear the year-end push is upon us. If you’re considering financing an airplane acquisition by December 31st, I recommend starting the process—soon.
While every financial institution has a different process and timeline, it doesn’t hurt to engage early to ensure funding by year-end.
Remember, financing is a team effort between bank and borrower. Approach the application process with a collaborative mindset for the best outcome.
What the Fed: A Look at Market Conditions
On November 7, the U.S. Federal Reserve lowered its target rate by 0.25%. However, it doesn't mean that longer-term rates (e.g., aircraft finance rates) will drop. As of November 8, the 10-year treasury sits at 4.32%. That’s 0.11% higher than what was quoted in my article on October 21.
Going forward, I’ll continue to reference the 10-year treasury monthly as an indication of general rate trends. That said, aircraft finance rates don’t exactly match the 10-year treasury. It’s merely a benchmark to gauge rate movements on loans across the board.
With the continued rise in the 10-year treasury, the phrase “higher for longer” is a topic of conversation. While it’s too early to predict 2025 trends, the current rates seen today on longer-term loans may persist. This will be something to keep an eye on as you finish out the year and plan for 2025.