The 10-year Treasury rate has jumped to 4.5% due to the spike in inflation. With the job market holding steady, the Federal Reserve’s next move is likely to be a rate hike, with MBA’s forecast predicting a first hike in mid-2027. Furthermore, the increase in rates is impacting financing costs for commercial real estate.
This week’s Chart of the Week examines how the current rate environment is feeding into CRE lending rates across four major property types. The figure shows that median rates across all four property types troughed in late 2024 and early 2025, briefly approaching 5.5%.
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