Commercial Mortgage Market Interest Rates

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Commercial Loan Rate Benchmarks

Commercial real estate loans are priced as a spread over a benchmark index. The tables below show the current level of the benchmarks lenders use most, with recent history, so you can see where base rates stand before a financing is priced.

U.S. Treasury Yields

BenchmarkLatestAs ofPrior day1 week ago1 month ago1-month change
2-Year Treasury4.83%Oct 2, 20264.78%4.81%4.39%+44 bps
5-Year Treasury5.06%Oct 2, 20265.01%4.98%4.54%+52 bps
7-Year Treasury5.17%Oct 2, 20265.12%5.06%4.66%+51 bps
10-Year Treasury5.28%Oct 2, 20265.24%5.17%4.79%+49 bps
30-Year Treasury5.63%Oct 2, 20265.61%5.49%5.27%+36 bps

Floating-Rate Benchmarks

BenchmarkLatestAs ofPrior day1 week ago1 month ago1-month change
SOFR (overnight)3.87%Oct 1, 20263.90%3.88%3.66%+21 bps
30-Day Average SOFR3.76%Oct 2, 20263.75%3.71%3.65%+12 bps
90-Day Average SOFR3.69%Oct 2, 20263.68%3.67%3.65%+4 bps
180-Day Average SOFR3.68%Oct 2, 20263.68%3.67%3.66%+2 bps
Prime Rate7.00%Oct 1, 20267.00%7.00%6.75%+25 bps
Effective Federal Funds Rate3.88%Oct 1, 20263.88%3.88%3.63%+25 bps

Data retrieved October 2, 2026, 5:30 PM CDT. Sources: U.S. Treasury yields from the U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates; Prime Rate and effective federal funds rate from the Federal Reserve Board, H.15 release; SOFR and SOFR averages from the Federal Reserve Bank of New York; Federal Reserve series retrieved from FRED, Federal Reserve Bank of St. Louis. Index levels only. INSIGNIA does not publish loan rates, and nothing on this page is a quote or commitment to lend.

How Commercial Real Estate Loans Are Priced

A loan's interest rate is the benchmark plus a spread. The benchmark depends on the loan program and whether the rate is fixed or floating. Fixed-rate loans generally price over the Treasury yield that matches the loan term, while floating-rate loans price over SOFR or Prime.

Loan programTypical benchmark
Agency multifamily (Fannie Mae, Freddie Mac), fixed5-, 7-, or 10-Year Treasury matched to term
Agency multifamily, floating30-Day Average SOFR
CMBS conduitSwap rates or Treasuries matched to term
Life insurance companyTreasury matched to term
Bank term loans5-Year Treasury, SOFR, or Prime
SBA 504 (SBA debenture portion)5- and 10-Year Treasuries
SBA 7(a)Prime plus an SBA-capped spread
Bridge and constructionTerm SOFR, sometimes Prime, plus a spread

Most bridge loans price over 1-Month Term SOFR, a licensed index not shown here. The 30-Day Average SOFR above is a close reference point.

What Moves the Spread

The spread over the benchmark reflects the lender's view of risk on the specific transaction. The main drivers are leverage (loan to value), cash flow coverage (debt service coverage ratio and debt yield), property type and market, loan term and prepayment structure, and the sponsor's experience, liquidity, and net worth. Two loans priced on the same day over the same index can differ by 100 basis points or more.

Pricing for a Specific Transaction

INSIGNIA arranges financing across agency, bank, CMBS, life company, SBA, and private lenders. Share the details of your property and we will identify the capital sources and pricing that fit.

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