August 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.
A Stable Rate Environment Continues
Treasury rates remained relatively stable throughout July, with the 5-year Treasury averaging approximately 4.33% during the month. While rates remained relatively stable by historical standards, Treasury yields moved modestly higher during July as markets continued to react to economic and inflation data.
Inflation has shown signs of reducing from the elevated levels experienced in recent years, but it remains a key area of focus for policymakers. The Federal Reserve has continued to emphasize a measured approach to any future policy changes, balancing progress on inflation with the overall strength of economic growth and employment. As a result, longer-term interest rates have remained relatively firm as markets adapt to a sustained higher-rate environment.
From a commercial real estate perspective, financing conditions remain constructive for well-positioned borrowers. While interest rates continue to play an important role in project economics, the recent period of market stability has provided greater visibility around borrowing costs and long-term planning. Businesses that secure financing during stable market conditions can often benefit from increased certainty when budgeting and managing future cash flows.
What This Means for You as We Move Through the Second Half of the Year
Although interest rates remain above the historic lows experienced in prior years, today's environment continues to support thoughtful long-term financing decisions. Whether your business is planning for expansion, equipment purchases, facility improvements, or other strategic investments, securing financing can provide greater certainty and flexibility. As economic conditions continue to evolve, a proactive approach to financing can help position your business for long-term success.
Contact our Small Business Team to see what we can do for you.
Read our July Market Rate Update.
Rates from Resource Center | U.S. Department of the Treasury as of August 10, 2026.
