July 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.
From Peak May Rates to Continued Stability in June
Treasury rates remained relatively stable throughout June, with the 5-year Treasury averaging approximately 4.17% during the month. Yields generally traded within a narrow range, reflecting a market that is balancing persistent inflation concerns with expectations that the Federal Reserve will maintain a restrictive policy stance for longer than previously anticipated.
While inflation pressures have eased from peak levels, recent economic data continue to suggest that price growth remains above the Federal Reserve's long-term target. As a result, policymakers have maintained a cautious tone, signaling that any future rate cuts will likely depend on additional evidence that inflation is moving sustainably lower. Intermediate- and long-term Treasury yields have remained firm as financial markets continue adjusting to a “higher for longer” interest-rate environment.
From a commercial real estate perspective, financing conditions remain favorable for well-positioned borrowers, although rate sensitivity continues to be an important consideration. Borrowers who secure financing during periods of market stability are generally experiencing greater certainty in both pricing and long-term cash-flow planning.
What This Means for You as We Move Through the Second Half of the Year
Although rates remain well above the historic lows of recent years, the current environment continues to support strategic long-term financing decisions. For businesses focused on preserving cash flow, protecting margins, and maintaining balance-sheet strength, locking in financing can provide greater certainty and reduce exposure to future market volatility as economic conditions continue to evolve.
Contact our Small Business Team to see what we can do for you.
Read our June Market Rate Update.
Rates from Resource Center | U.S. Department of the Treasury as of July 2, 2026.
