10 August 2011
Actually, a «normal» lender spread is 135bps (1.35%), so ultra-deep-discounted 5-year fixed rates should theoretically be about 2.75% now. But, of course, this theory doesn’t mean anything as these times can hardly be called «normal».
It’s obvious that today no one expects to see 2.75% 5-year rates. So if you know where to find a 5-year fixed rate around 3%, you may be quite lucky.