Commercial Mortgage Rates

Below you will find current commercial mortgage rates as we see them in the marketplace. These are to be used as guidelines and are not an offer to lend. As you know, every deal is different. Without fully insuring a property and sponsor, it is impossible to know what rate you will get on your loan. As a result, rates can be lower or higher than the rates posted here. Below, we have provided rate ranges based on current index rates and current credit spreads that we see in the marketplace.

We offer more loan terms than those provided below, however these represent the most common loan structures. Each of these quotes are based on a theoretical commercial mortgage at 75% ltv. A lower loan to value for each scenario would in theory lower each rate.

Current Commercial Mortgage Rates

11/16/2018
Current Index Rates
Treasury rates
5 year2.89%
7 year2.99%
10 year3.08%
1 month LIBOR2.31%
Multifamily Fixed Rate LoansLow RangeHigh Range
5 year 4.19%4.64%
7 year 4.29%4.74%
10 year4.38%4.83%
Commercial Fixed Rate LoansLow RangeHigh Range
5 year 4.39%4.79%
7 year 4.49%4.89%
10 year4.58%4.98%
Bridge Loan Rates
Multifamily5.31%9.81%
Commercial 5.81%10.81%

These posted commercial mortgages rates apply to all commercial real estate property types that we service. Below is a list of current property types that are a fit for our programs;

  • Multifamily & Apartment buildings
  • Retail centers
  • Office Buildings
  • Hotels & motels
  • Industrial property
  • Self Storage facilities
  • Mobile home parks

Clopton Capital is a nationwide commercial real estate capital company and mortgage banking firm. We specialize in commercial mortgages, commercial bridge loans, and real estate private equity for transaction sizes ranges from $1 to $40 million. The commercial mortgage lenders at our company bring long lasting relationships with capital providers that give our clients deep insight and superior execution.

Commercial Mortgage Rate Guidance

Interest rate forward guidance is difficult to give even for the most qualified people. There are dozens of factors that affect market interest rates every minute and accurately taking into account each factor to give exact guidance as to where rates are going is not practical. However there there are several main factors that you can take into account to get a feel for the general direction of rate movement over the long term.

Inflation – Interest rates are very sensitive to inflation data in the economy because it determines the cost of stagnant money. If inflation is 2% year of year, and you are not earning any interest on a cash deposit, essentially you are losing 2% of the value of your money year of year. To account for this, interest rates rise and fall with inflation to ensure that an investment always realizes a positive return. The higher the inflation in the system, the higher rates will be. The FED is also a main driver in short term rates as their mandate is to control inflation in the economy. As the FED sees higher inflation, they will engage in monetary actions to control inflation, typically by raising short term interest rates.

GDP & Economic Output – Gross domestic product readings are another main driver of interest rates. Higher perceived growth can lead to higher interest rates as it pressures inflation and demand for capital. As the economy expands, upward pressure it put on interest rates, as it contracts, the opposite action is seen.

Employment data – Payroll and employment data is a main driver of interest rates in our economy. A tight labor market (low unemployment) is seen to lead it an increase in hourly wages, which could lead to inflation. This would put upward pressure on interest rates across the yield curve. As such the relationship is low unemployment and higher payroll numbers will put upward pressure on interest rates. higher unemployment and lower payroll wage numbers will lead to lower rates.

Commercial Mortgage Rate Spreads – When it comes to commercial mortgage rates, the spread over the index is another consideration that will affect the interest rate on your loan. Spreads are determined by several factors depending on what market you are in, however generally spread are determined by supply/demand for capital and risk. The higher the supply of capital the lower spreads will be (lower coupon rate). Alternatively the higher the demand for capital the higher spreads will be (higher coupon rate). As for risk, the higher the perceived risk of any transaction, the higher the spread over the index will be, raising the all in coupon rate of the deal.

Understanding these factors and how they interact will help you find the best commercial mortgage loan rates.

For Current Commercial Mortgage Rates - Contact Us - 866-647-1650

We’re able to quickly provide commercial mortgage rates for any loan inquiry when given the loan amount, property type, loan to value, and desired fixed period. To get a soft quote on any commercial mortgage, simply fill out the contact form.

When requesting your quote, be sure to include the following information:

Loan amount

Property type and location

Property value

Desired fixed period and amortization

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