The chart above represents over five years of the four interest rates that I record weekly. As stated in previous blogs, the 5-year swap rate (in red) is the most interesting, because it is a pretty good indicator of what rate to expect for Medical Equipment and other finance. The swap rate last Friday was 2.54%, to which we add at least 2% for margin and risk, resulting in rates to my clients in the mid to high 4s.
My analysis of the trend remains down, because we continue to record lower lows and lower highs. But, if you need to invest in income-producing equipment, now would be a good time to lock in a really low 5-year rate. You may also want to consider bringing forward planned investments, such as equipment replacement or major upgrades.