November Market Rate Update
Each month, the IAACU Small Business Team aims to provide you with insights into current trends in commercial real estate market rates, which are influenced by movements in the U.S. Treasury yield.
Market Overview: Treasury Yields Show Continued Easing
In October, the 5-year U.S. Treasury yield continued to ease, averaging around 3.70%, with daily closes ranging from approximately 3.55% to 3.75%. This marks a further decline from July’s average of 3.92%, reinforcing signs of stabilization in the rate environment.
Market Outlook
Heading into the end of the year, the 5-year Treasury is expected to remain in the 3.60% to 3.75% range, barring any major shifts in inflation or Federal Reserve policy. The market appears to be settling into a more neutral stance as prior rate changes are absorbed, and the government shutdown continues.
Implications for Commercial Real Estate Financing
With Treasury yields softening, loan rates for commercial real estate remain attractive. Lenders continue to show interest in well-positioned assets, especially for borrowers with strong credit and stable cash flow. For high-quality deals, loan rates are expected to range between 6.10% and 6.70% in the current environment, reflecting both lower Treasury yields and competitive lender behavior.
Read our October Market Rate Update.
*Rates from Resource Center | U.S. Department of the Treasury as of November 5, 2025.
