Current Market Rates

StackSource is the only source for commercial mortgage rates updated daily.

Today’s commercial mortgage rates

Loan program type
Interest rates
Freddie Mac Optigo
6.44% - 7.91%
Fannie Mae
5.65% - 6.92%
HUD 223(f)
6.20% - 6.70%
6.52% - 8.12%
Regional Banks/Credit Unions
6.90% - 10.50%
Life Insurance Companies
5.77% - 7.17%
Debt Funds
9.12% - 15.37%
HUD 221(d)(4)
6.80% - 7.30%
Note: These commercial mortgage rate ranges should be considered "typical", but outliers exist on both the high and low end. These are not a guarantee of rates on any particular commercial real estate deal.

Today’s Financial Indices


US Treasury Bonds


US Treasury Bonds


US Treasury Bonds


US Treasury Bonds


US Treasury Bonds


US Treasury Bonds






SOFR Swap Rate


SOFR Swap Rate




Commercial Mortgage Rates [Updated Today]

Commercial mortgage rates are always changing, and it's often hard to get updated live rates. We at StackSource are frequently asked about current commercial mortgage rates from our users. That is why we wanted to not only provide the most updated commercial real estate rates daily, but also explain all the nuances. Commercial real estate loan rates are determined by a number of factors, but the most important factor is supply and demand in the capital markets. Commercial real estate investors are constantly looking for properties that meet their investment criteria, and commercial mortgage lenders want to understand the property’s risk/return profile for these property investments before providing loan quotes.

Where did LIBOR rates go?

The London Interbank Offered Rate (“LIBOR”) was the most popular interest rate index for commercial real estate bridge loans for many years. As of June 30, 2023, LIBOR was officially sunset as an after-effect of the landmark discovery of scams perpetrated by multiple major banking institutions more than a decade earlier in 2012.

In the US commercial mortgage market, the Secured Overnight Financing Rate (“SOFR”) has become the primary replacement for bridge loans and interest rate swaps that previously required LIBOR to function. Unlike LIBOR, SOFR is determined by measuring overnight lending transactions between institutions, rather than relying on a survey from participating institutions, and therefore not subject to the same avenues for fraud.

How Frequently Do Commercial Mortgage Rates Change?

Commercial Mortgage Rates change every day because most lenders, particularly banks and credit unions, set their interest rates in accordance with “index” rates ultimately either (1) governed by national institutions like the United States Federal Reserve and the US Department of Housing and Urban Development (“HUD”), or (2) rise and fall based on total supply and demand, like US Treasury Bonds. Commercial real estate loans have more risk involved than government-backed bonds, so interest rates are usually at a premium, or “spread” over the underlying financial indeces. Commercial mortgage rates are also usually somewhat higher than residential mortgages, with exceptions for lower leveraged loans for the strongest borrowers.

Who sets commercial real estate loan rates?

Some commercial mortgage rates are based on the "Prime Rate" directly pegged to the Fed Funds Rate governed by the Federal Reserve Board. Other commercial mortgages are pegged to US Treasury Bond Yields. Still others have variable interest rates tied to indeces like SOFR, which mirror the rates that financial institutions’ own cost of borrowing funds in the global credit market. Commercial real estate loans are typically pegged to one of these financial indeces with some added premium or discount, depending on risk.

How are Commercial Mortgage Rates used?

Commercial banks charge higher commercial mortgage rates and fees than they do for residential properties because there's more inherent risk involved when it comes down to lending out large sums of money for investment purposes. The greater loan amount at stake in proportion to the property value, measured by the Loan-to-Value ratio ("LTV") may also require additional security measures from borrowers who need these loans, resulting in a more complex loan structure and potentially recourse against the borrower’s personal assets along with the property.

There are 8 major types of commercial loan programs and each has a different range of rates. Commercial real estate investors use current commercial mortgage rates to determine their cost of capital for a particular investment in order to see if it's even worth investing in at all.

Commercial loan rates are determined by the current market conditions but there is a lot of back and forth with lenders to negotiate terms.

Commercial mortgages can be hard to obtain, especially for borrowers who don't have perfect credit, a high net worth, or a long, successful track record in real estate investment, so sometimes it's helpful to work with an experienced Capital Advisory team like StackSource to help with the process.

Commercial mortgage rates change all the time because they're affected by several factors such as:

  • The current economic outlook, which affects consumer confidence (how much people plan to spend and invest). This also determines if banks need more liquidity.
  • Federal interest rate changes often affect commercial mortgage rates closely after rising or falling since commercial loans can impact businesses' ability to participate in the local economy and create jobs at home.
  • Increases or decreases in inflation since property investments are typically long term assets.

Multi-family Investment Property Loans

Commercial mortgage rates apply to multi-family investment properties (like apartment buildings and mobile home parks) as well as commercial properties. Commercial real estate investors are able to take out loans for these types of large investments, and they have several options such as fixed-rate or adjustable rates (commercial lenders usually call adjustable rates "floating").

There are several different categories of commercial mortgage lenders that provide different financing structures for multifamily assets. Besides having different rate ranges, these lenders have different stipulations for property value and income, and offer varied loan terms to borrowers.

Fixed rate loans offer a stable payment based on the original loan terms over a fixed period of time, usually somewhere between five years and thirty five years. These set payments allow commercial property owners to pay off their debt on a predictable schedule that stabilizes their cash flow or equity position.

Freddie Mac Optigo Commercial

One of the primary lenders for multi-family investments is US government agency Freddie Mac with their Optigo multifamily loan program. This loan program provides non-recourse commercial mortgages of $1 Million or greater for apartment buildings with stable occupancy and experienced managers.

A key selling point for borrowers that seek Freddie-backed multifamily loans is that they are Non-Recourse. This means that in the case of a default, except in rare cases of fraud or gross negligence, a loan default prevents personal liability to the borrowers.

Commercial Property Interest Rates

The average interest rate for commercial properties fluctuate based on current economic factors. The rates will also vary between various commercial property types, locations, and risk profiles.  A few examples of commercial property types include:

Loans for property types with strong economic tailwinds will typically command more favorable financing rates and terms. Multi-family and industrial properties are currently in high demand on the capital markets, and will see some of the lowest interest rates. Office buildings (with the exception of Medical Office), and certain retail properties may be seen by lenders as more risky financial bets, so financing rates and terms may be less favorable.

Top 11 Questions About Commercial Real Estate Loans

Here are some of the most frequently asked questions we typically see investors ask at StackSource.

What qualifies as Commercial Real Estate?

Commercial real estate is defined as any property where the majority of its use (generally at least 50%) falls under commercial or business usage. Commercial properties include: office buildings, strip malls, hotels/motels, shopping centers, warehouses, and more. Commercial mortgages are available for all types of commercial properties.

Commercial mortgages also apply to Multifamily properties (apartments, mobile home parks, student housing, and senior housing) if the property comprises of five or more residential units.

Why use a commercial real estate loan?

Commercial real estate loans can be used to acquire, develop, or refinance a commercial or multifamily property, and are typically larger than residential mortgages. Much like buying a home with a consumer mortgage, a commercial mortgage allows the property owner to own and invest in the property with less cash than the total value of the property. Using a commercial mortgage with a low interest rate to purchase a property can also boost an investor’s financial returns.

What is an ARM Commercial Loan?

ARM stands for an adjustable-rate mortgage, also known as a Variable Rate or Floating Rate. ARMs are often used when borrowers desire lower monthly payments in the short term, but are willing to accept the risk of a higher interest rate. Commercial ARMs can be helpful for borrowers looking at several years of low commercial mortgage rates without taking on additional costs or restrictions of a fixed rate loan, like a prepayment penalty.

Who controls Commercial Interest Rates?

Commercial loan interest rates are highly influenced by The Federal Reserve and its members (or the central banks of various countries outside the US), but ultimately are driven by the total supply and demand in the capital markets. Therefore no one entity controls commercial mortgage rates.

How do Commercial Loan Rates Affect Investors?

The rates you receive directly impact how much it will cost you to buy a given property, and therefore impacts the key financial metrics such as your Cash on Cash Return, Equity Multiple, and IRR.

How can you find the best commercial real estate rates?

There are thousands of commercial mortgage lenders in the United States. The most commonly known commercial lenders are banks and private lending companies. However, there are several other categories of lenders that may be able to provide the most suitable commercial mortgage depending on the property type, size, location, and borrower business plan.

Other types of commercial mortgage lenders include credit unions, life insurance companies, debt funds, government agencies (like Fannie Mae and Freddie Mac), and commercial mortgage backed securities (“CMBS”).

Soliciting quotes from multiple lenders that are interested in the particular commercial real estate asset is the most reliable way to find the best commercial mortgage rate.

How much is the typical down payment for a commercial mortgage?

Down payments for commercial real estate loans are typically between 20% and 50%, and will vary based on the loan scenario. Down payments, also known as an investment’s Equity Requirement, will be determined by location, type of asset, experience of the borrower, and risk profile of the investment.

What's the typical minimum down payment for a commercial mortgage?

The minimum down payment for commercial real estate loans is usually around 20-30% of the purchase price if the property is cash-flowing and the borrower has a clean financial profile, but this varies widely based on the type of property, the business plan, and the borrower's track record.

What are closing costs in commercial real-estate?

Commercial real estate loans always have closing costs, some of which are regulated by law.

Closing costs can include appraisal fees, credit reports, real estate attorney fees, title insurance, and recording charges. Commercial mortgage borrowers are usually also billed for the lender’s real estate attorney, so be cognizant of negotiating small items in the loan documents that may not be worth revising.

What are typical fees for a commercial mortgage?

Fees related to originating a commercial mortgage may also be assessed at closing, and be added to the list of closing costs above. Some loans will also require payment of an application fee, an extension fee, or even an exit fee. The loan’s Term Sheet will outline a full schedule and explanation of fees before committing to take out the loan.

Commercial property investors may also be responsible to pay additional settlement agent or broker's commissions in addition to lender origination points (in other words - an up charge added onto their interest rate).

What is Commercial Mortgage Debt Service Coverage Ratio?

The debt service coverage ratio (“DSCR”) determines how much net income commercial real estate properties generate compared with their loan payment. Commercial mortgage debt service coverage ratios vary depending on property use, location and other factors, but most lenders want at least a minimum of 1.2 times monthly loan payments from total income.

This means that if your property generates income of $120,000 per month, net of expenses, then a lender may provide a loan that costs up to $100,000 per month in principal and interest payments.

Why Choose StackSource?

StackSource tracks live and accurate Commercial Real Estate Loan rates from hundreds of lenders in one place – making it quick and easy for Commercial Real Estate Investors to find competitive commercial mortgage quotes across all asset classes regardless if they're developing, acquiring, or refinancing an investment property.

In addition to tracking the rates and terms of hundreds of lenders, StackSource offers full-service support in structuring and negotiating capital for real estate investment and development deals through its experienced Capital Advisory team. Between the experienced team and the efficient web portal streamlining the financing process, StackSource aims to be the most transparent commercial real estate financing intermediary in the country.

Submit your property info for Commercial Lending Quotes today.