CRE benchmark rates today
Commercial mortgage rates are quoted as a spread over these benchmarks — typically 150–300 basis points over the matching Treasury for stabilized properties. Data is sourced directly from the Federal Reserve Bank of St. Louis (FRED) and refreshes daily.
| Benchmark | Rate | As of |
|---|---|---|
| Federal funds rate (effective)The Fed's policy rate — the anchor for all short-term borrowing costs. Source: FRED | 3.62% | 2026-07-13 |
| 10-year Treasury yieldThe benchmark for fixed-rate commercial mortgage pricing. Source: FRED | 4.62% | 2026-07-13 |
| Prime rateCommon index for small-balance and owner-occupied commercial loans. Source: FRED | 6.75% | 2026-07-10 |
| 30-year mortgage averageResidential benchmark — useful context for where consumer credit sits. Source: FRED | 6.49% | 2026-07-09 |
Benchmark rates are published by the Federal Reserve and are not loan offers. The rate on any commercial mortgage depends on the property, leverage, and lender — typically quoted as a spread over these indices.
From benchmark to your quote
Fixed-rate lenders typically price off the Treasury that matches the loan term (a 10-year loan prices off the 10-year Treasury). Floating bridge and construction debt prices off SOFR. The spread a lender adds reflects leverage, asset class, market, and sponsor track record — which is why two borrowers can see quotes 100+ basis points apart on the same day. Use the loan comparison calculator to judge quotes on all-in cost, and the DSCR calculator to see how today's rates change your maximum loan.
Frequently asked questions
How are commercial mortgage rates set?
Most commercial mortgage rates are quoted as a spread over a benchmark — typically the 5- or 10-year Treasury yield for fixed-rate loans and SOFR for floating-rate loans. Banks and life insurance companies typically price stabilized deals at roughly 150–300 basis points over the matching Treasury, with the spread reflecting leverage, asset class, and sponsor strength.
Why is my quoted rate higher than the 10-year Treasury?
The Treasury yield is the risk-free baseline; the lender's spread on top covers credit risk, servicing, capital costs, and profit. Higher leverage, transitional properties, weaker markets, and less experienced sponsors all widen the spread. A quote of Treasury plus 250 basis points on a 4.3% Treasury means a 6.8% note rate.
What is the difference between the prime rate and SOFR?
Prime is a bank-administered lending rate that typically sits about 3 percentage points above the federal funds rate and is common in small-balance commercial lending. SOFR (Secured Overnight Financing Rate) is a market-based overnight rate that replaced LIBOR as the standard index for institutional floating-rate CRE debt.
Do these benchmark rates predict where CRE loan rates are going?
Directionally, yes — fixed CRE rates move with Treasury yields, and floating CRE rates reset with SOFR. But spreads also move: in stressed credit markets spreads widen even when Treasuries fall, which can leave borrowing costs unchanged or higher despite lower benchmarks.