May Market Rate Update
MARKET RATE UPDATE
May Is National Small Business Month — Let’s Talk Rates!
Yield Curve Update: A Mixed Picture
Turbulence in April: A Wild Ride
April was marked by sharp rate swings. Mid-month, the 5-year yield spiked to 4.15%, only to reverse course and fall back to 3.72%, the lowest level since October 2024. This volatility can be frustrating for some, but for borrowers, it’s potentially great news. Many commercial real estate loans are priced based on the 5-year Treasury — meaning lower Treasury rates can translate to better loan pricing.
Looking Ahead: What to Expect in May
The downward trend we’ve seen since January (when the average rate was 4.43%) suggests a possible leveling-off. While a further dip to 3.50% isn’t off the table, a more likely scenario is a rebound back toward the 3.90%–4.00% range, barring any major global surprises. For borrowers, this likely puts market-rate pricing for strong commercial real estate loans in the 6.40%–7.00% range.
Special Offer: Celebrating Small Business Month!
To honor National Small Business Month, IAA is offering a limited-time commercial real estate loan special. This includes both lower closing costs and discounted interest rates. The offer is available to COUNTRY agents and any COUNTRY policyholder business owners they refer. Contact our team today to discuss your financing needs and take advantage of this special for the month of May.
Read our April Market Rate Update.
*Rates from Resource Center | U.S. Department of the Treasury as of May 1, 2025.
