June Market Rate Update
Each month, the IAACU Small Business Team aims to provide you with insights into the current trends in Commercial Real Estate market rates, which are influenced by movements in the US Treasury yield.
Treasury Yield Trends: A Shift in Momentum
Outside of a few brief dips in May, the 5-year U.S. Treasury yield remained tightly clustered around its monthly average of 4.02%. This marks a 0.10% increase from April and breaks a four-month streak of declining rates. The yield’s return to the 4.00% level—followed by a rejection and upward movement—suggests we may have reached a local bottom.
June Rate Forecast
Looking ahead, we anticipate the 5-year Treasury yield will stairstep higher throughout June, likely averaging between 4.10% and 4.15%. While unexpected economic news could cause temporary swings—possibly dipping to 3.90% or spiking to 4.30%—these deviations are expected to be short-lived. Historically, such volatility tends to revert quickly to the projected range.
Impact on Commercial Real Estate Loans
If the forecast holds, commercial real estate loan rates should remain competitive, with strong deals likely falling between 6.50% and 7.10% during June. This range reflects the current Treasury environment and lender appetite for quality assets.
Thank You for a Successful Small Business Month!
A huge THANK YOU to all the amazing COUNTRY Reps and business members who participated in our exclusive commercial loan offer during Small Business Month! This was our first-ever rollout of this kind, and your enthusiasm made it a massive success. We’re proud to support your growth and look forward to bringing you more powerful opportunities. Let’s keep building success—together! Ready to work with our team now? We'd love to work with you!
Read our May Market Rate Update.
*Rates from Resource Center | U.S. Department of the Treasury as of June 4, 2025.
