Commercial Mortgage Rates: Week of August 10, 2026

It is a common and understandable source of frustration. The Federal Reserve controls the federal funds rate, which directly influences short-term borrowing costs like SOFR and Prime. Fixed-rate commercial mortgages, however, are priced off Treasury yields, which are set by the bond market and reflect long-term expectations about growth and inflation rather than Fed policy alone. The Fed has reduced short-term rates, which is why SOFR has fallen from its peak and floating-rate bridge loans are somewhat cheaper than they were in 2023. But 10-year Treasury yields have remained elevated because bond investors are still pricing in the possibility of persistent inflation and continued federal deficit spending. Until Treasury yields move meaningfully lower, fixed-rate commercial mortgage coupons will remain in their current range regardless of what the Fed does with overnight rates.

These two concepts describe rate pricing in fundamentally different ways, and confusing them can produce serious errors in your underwriting. A spread is the margin a lender charges above a benchmark index. For example, a bridge lender might quote SOFR plus 325 basis points, meaning if SOFR is 4.82%, the all-in rate is approximately 8.07%. The spread is 325 basis points, not 8.07%. An all-in rate, also called a coupon, is the total interest rate the borrower pays, expressed as a percentage. Fixed-rate products like agency loans, life company loans, and CMBS are typically quoted as all-in coupons, for example 5.85%, sometimes accompanied by the spread over a Treasury benchmark for context. Floating-rate products like bridge and construction loans are typically quoted as a spread over an index, because the all-in rate will fluctuate as the index moves. When evaluating competing loan quotes, always confirm whether you are comparing all-in rates to all-in rates or spreads to spreads, otherwise you may be comparing apples to oranges without realizing it.

Timeline varies significantly by loan type, and underestimating it is one of the most common and costly mistakes borrowers make. Bank balance sheet loans on straightforward transactions can close in 30 to 45 days if the borrower's documentation is organized. Agency multifamily loans through Fannie Mae or Freddie Mac typically run 45 to 75 days from application to close, assuming third-party reports such as appraisals and property condition assessments are ordered immediately. Life company loans generally take 60 to 90 days, as their internal credit committees meet on a set schedule. CMBS conduit loans run 60 to 90 days and involve a more intensive underwriting and securitization process. HUD/FHA loans are the outlier, with timelines that can run six months to over a year depending on program type and processing volume. Bridge and construction loans from debt funds can close in 21 to 45 days when deal terms are clean and sponsorship is experienced. The practical advice is to start the process earlier than feels necessary, because delays in third-party reports, title, and entity documentation are common and can push closings past a purchase contract deadline or a loan maturity date.