Capital Markets Report: Week of June 15, 2026

Rate Environment

Mid-June 2026 showed modest improvement in long-term fixed-rate pricing as Treasuries drifted lower. Agency and life company execution remained strong for qualified stabilized assets.

Key Rate Ranges (Week of June 15, 2026)

• Agency Multifamily (Fannie/Freddie): 5.85%, 6.50% fixed (5-10 year)
• Life Company: 5.95%, 6.60% fixed (preferred for stabilized multifamily & industrial)
• CMBS Conduit: 6.25%, 7.00% fixed
• Bank/Portfolio (5-Year Fixed): 6.00%, 6.75%
• Bridge/Transitional: SOFR + 275-400 bps (~7.50%-8.85% all-in)
• Construction (Floating): SOFR + 250-375 bps
• SBA 504: Blended 6.00%, 6.75%

Market Outlook & Themes

• Fed & PCE: Benign inflation prints could push the 10-Year back toward 4.20% or lower, supporting CRE pricing into fall.
• Transaction Volume: Q1/Q2 2026 running meaningfully ahead of 2025, led by multifamily and industrial. Grocery-anchored retail seeing renewed lender interest.
• Lender Competition: Life companies and agency lenders ahead on targets, good window for qualified stabilized deals.
• Cap Rates vs Financing Costs: Negative leverage has narrowed but not closed. Buyers using more equity and conservative assumptions.

Action Items

• Get rate quotes on deals inside 90 days, modest Treasury rally creates a favorable window.
• Stress-test at 4.50% on the 10-Year (conservative underwriting).
• Engage early on 2026 maturities.
• Consider locking long-term fixed for 7-10 year holds rather than floating.

Related reading: For construction financing and ED1 context in the current rate environment, see our ED1 Affordable Construction Financing in Los Angeles page and Construction Loans guide.