Economic Outlook & Market Data

Treasury yields, macro indicators, economic calendar, and yield curve analysis, the data that drives commercial real estate financing decisions.

Market Indices & Rates

Key benchmarks that determine commercial mortgage pricing across every capital source.

IndexTodayYesterdayLast MonthLast Year
5-Yr Treasury3.90%3.87%3.80%3.95%
7-Yr Treasury4.08%4.06%4.00%4.13%
10-Yr Treasury4.29%4.26%4.23%4.34%
1-Yr Treasury3.70%3.71%3.64%3.99%
2-Yr Treasury3.76%3.76%3.68%3.81%
30-Yr Treasury4.89%4.87%4.86%4.80%
Fed Funds Rate3.50–3.75%3.50–3.75%3.50–3.75%4.25–4.50%
SOFR3.67%3.72%3.65%4.32%
Prime Rate6.75%6.75%6.75%7.50%
S&P 5007,0937,0416,7165,283
Dow Jones49,15348,57946,99339,142
NASDAQ24,34224,10322,48016,286
Gold ($/oz)$4,878$4,785$5,001$3,309
Silver ($/oz)$82$79$80$32
Bitcoin$76,660$75,152$68,792$84,896
Oil (WTI/bbl)$82$95$96$65
U.S. Treasury Yield Curve

Select any two dates to compare how the yield curve has shifted. Hover over data points for exact rates at each maturity.

Feb 2026
Feb 2025
2s/10s Spread: +62bp
Key Economic Indicators

The macro data that shapes Fed policy, investor sentiment, and commercial real estate lending conditions.

2.4%
CPI (Annual, January 2026)
Consumer Price Index, headline inflation measure. Down from 2.9% in December. Approaching the Fed's 2% target.
Trending Down
Jan 2026
2.4%
-0.5% from Dec
Dec 2025
2.9%
unchanged
Sep 2025
2.7%
-0.1%
Jun 2025
3.0%
-0.3%
Jan 2025
3.3%
from 3.0%
Jan 2024
3.1%
-0.3%
Consensus Forecast
Fed target: 2.0%. Economists expect CPI to reach 2.1-2.3% by mid-2026 if tariff impacts remain contained. Feb reading (due Mar 12) consensus: 2.3%. A sustained move below 2.5% strengthens the case for rate cuts in H2 2026, directly benefiting CRE borrowers through lower permanent loan rates.
2.8%
Core PCE (Annual, December 2025)
The Fed's preferred inflation gauge excluding food and energy. January reading due Feb 21.
Holding Steady
Dec 2025
2.8%
unchanged
Sep 2025
2.7%
-0.1%
Jun 2025
2.6%
-0.2%
Dec 2024
2.9%
unchanged
Jun 2024
2.6%
from 2.8%
Dec 2023
2.9%
from 3.2%
Consensus Forecast
Fed target: 2.0%. The FOMC's December SEP projected core PCE at 2.5% by year-end 2026. Markets expect a gradual decline to 2.4-2.6% by mid-2026. This is the single most important metric for Fed rate decisions, and by extension, the cost of capital for every CRE loan.
2.3%
GDP Growth (Q4 2025, 1st Est.)
Annualized real GDP growth. Economy remains resilient despite higher rates, supporting asset values.
Solid Growth
Q4 2025 (1st)
2.3%
unchanged
Q3 2025
2.3%
+0.3%
Q2 2025
2.0%
+0.5%
Q1 2025
1.5%
-1.3%
Consensus Forecast
2026 full-year consensus: 1.8-2.2%. The Atlanta Fed GDPNow Q1 2026 estimate is tracking ~1.9%. Moderate growth supports CRE asset values without overheating inflation. A soft landing continues to be the base case, positive for transaction volume and refinance activity.
4.0%
Unemployment Rate (January 2026)
Labor market remains tight but gradually cooling. Supports gradual rate normalization from the Fed.
Stable
Jan 2026
4.0%
unchanged
Oct 2025
4.0%
unchanged
Jun 2025
4.1%
from 3.9%
Jan 2025
3.9%
from 3.7%
Consensus Forecast
Fed FOMC median projection: 4.2% by year-end 2026. A gradual rise supports the case for rate cuts without signaling recession. For CRE: stable employment sustains office and retail occupancy; any spike above 4.5% would pressure suburban office and lower-tier retail.
143K
Nonfarm Payrolls (January 2026)
Monthly job gains. Below the 2024 average of 186K, signaling a gradual labor market cooldown.
Moderating
Jan 2026
143K
-5K from Dec
Dec 2025
148K
-7K
2025 Avg
158K
vs 186K in 2024
2024 Avg
186K
vs 251K in 2023
Consensus Forecast
Feb consensus: 155K. The trend of moderating job growth is consistent with a soft landing. For CRE: steady payroll gains support multifamily demand (renters) and logistics/warehouse absorption. A move below 100K/mo would signal recession risk.
95.3%
Fed Hold Probability (March 2026)
CME FedWatch probability of no change at the March 18 FOMC meeting. Next cut expected mid-2026.
Hold Expected
Mar 2026 Meeting
95.3% Hold
4.7% cut
May 2026 Meeting
72% Hold
28% cut
Jun 2026 Meeting
45% Hold
55% cut
Sep 2026 Meeting
25% Hold
75% cut
Rate Path Projection
Current rate: 3.50-3.75%. Markets are pricing 1-2 cuts by year-end 2026, likely starting June/July. The dot plot median implies a terminal rate of 3.25-3.50% for this cycle. Every 25bp cut translates to approximately 15-20bp lower on SOFR-indexed bridge loans and adjustable-rate CRE debt.
$35.8T
National Debt
Total U.S. federal debt. Continued fiscal expansion puts upward pressure on long-term Treasury yields.
Rising
Mar 2026
$35.8T
+$1.2T YoY
Dec 2024
$34.6T
+$1.5T YoY
Dec 2023
$33.1T
+$2.2T YoY
Dec 2020
$27.7T
COVID surge
CRE Impact
Rising debt drives heavier Treasury issuance, which pushes up the term premium on the 10-Year and 30-Year. This directly increases permanent loan rates and CMBS pricing. CBO projects debt-to-GDP at 120% by 2030. The structural upward pressure on long-term rates is arguably the biggest headwind for CRE valuations this decade.
49.2
ISM Manufacturing PMI (Jan 2026)
Below 50 signals contraction in manufacturing. Industrial property demand remains bifurcated: logistics strong, traditional manufacturing soft.
Contraction
Jan 2026
49.2
-0.1 from Dec
2025 Avg
48.9
below 50
Last >50
50.3
Oct 2024
CRE Impact
Manufacturing PMI below 50 for 15+ months. However, the ISM Services PMI remains above 50, supporting office and mixed-use demand. For industrial CRE: modern logistics and cold storage remain strong; legacy manufacturing space faces headwinds. The bifurcation favors investors in Class A industrial.
5.2%
National CRE Cap Rate (Avg)
Average all-property-type capitalization rate. Spread over 10-Yr Treasury remains healthy at ~110bp, supporting valuations.
Stabilizing
Q1 2026
5.2%
-20bp from peak
Q4 2024
5.4%
cycle peak
Q4 2022
4.8%
expanding
Q4 2021
4.5%
cycle low
CRE Impact
Cap rates have likely peaked. The 110bp spread over the 10-Year is historically healthy (long-term average: 150bp). As Treasury yields decline through 2026, cap rates should compress 25-50bp by year-end, translating to 5-10% valuation increases for stabilized assets. Multifamily and industrial leading the compression; office lagging.
Upcoming Macro Events

Key economic releases and Fed decisions that impact commercial real estate lending rates.

Feb 21, 2026 · 8:30 AM ET
PCE Price Index (January)
The Fed's preferred inflation measure. Key for rate cut probability and commercial mortgage rate direction. December core PCE came in at 2.8% annual.
High Impact
Dec 2025
2.8%
Core PCE annual
Sep 2025
2.7%
Briefly dipped
Jun 2025
2.6%
Cycle low
Dec 2024
2.9%
Year-end
Dec 2023
2.9%
Down from 3.2%
Why This Matters for CRE
Core PCE is the single metric the Fed watches most closely. A reading below 2.6% would significantly boost rate cut odds for June, potentially lowering permanent loan rates 15-25bp by mid-year. Consensus estimate: 2.6-2.7%.
Feb 21, 2026 · 8:30 AM ET
Q4 2025 GDP (2nd Estimate)
Second estimate of Q4 GDP. The first estimate came in at 2.3% annualized. Strong GDP supports higher-for-longer rates.
Medium Impact
Q4 2025 (1st)
2.3%
Advance estimate
Q3 2025
2.3%
Final
Q2 2025
2.0%
Final
Q1 2025
1.5%
Slowdown
Why This Matters for CRE
Revisions to GDP rarely move markets unless large (>0.5%). A strong revision would support current rate levels; a downward revision would increase rate cut bets. The "Goldilocks" range for CRE is 1.5-2.5%, enough growth to support occupancy without overheating inflation.
Mar 7, 2026 · 8:30 AM ET
February Jobs Report (Nonfarm Payrolls)
Labor market health directly affects Fed policy. January added 143K jobs. A cooling market strengthens the case for rate cuts.
High Impact
Jan 2026
143K
Below avg
Dec 2025
148K
Revised down
2025 Avg
158K
vs 186K in '24
2024 Avg
186K
vs 251K in '23
Why This Matters for CRE
Consensus estimate: 155K. A number below 130K would spike rate cut odds and likely push the 10-Year below 4.0%, a meaningful tailwind for CRE valuations and refi activity. Above 180K would push yields higher and delay rate cuts.
Mar 12, 2026 · 8:30 AM ET
CPI Report (February)
Consumer Price Index for February. January CPI dropped to 2.4% annual, continued progress toward 2% target would support rate cut expectations.
High Impact
Jan 2026
2.4%
Sharp drop
Dec 2025
2.9%
Annual
Jun 2025
3.0%
Sticky
Jan 2025
3.3%
Elevated
Why This Matters for CRE
Consensus estimate: 2.3%. This is the last major CPI print before the March 18 FOMC meeting. A reading at or below 2.3% would cement expectations for a June cut. Every 10bp drop in inflation expectations can translate to 5-8bp compression in CRE permanent loan spreads.
Mar 18, 2026 · 2:00 PM ET
FOMC Rate Decision & Projections
Next scheduled decision with updated economic projections and dot plot. Markets pricing 95.3% probability of a hold at 3.50-3.75%. Powell press conference at 2:30 PM.
High Impact
Jan 2026
Hold
3.50-3.75%
Dec 2025
Hold
Paused cuts
Nov 2025
-25bp
to 3.50-3.75%
Sep 2024
-50bp
Pivot began
Cumulative
-175bp
Since Sep '24
Why This Matters for CRE
The dot plot and Powell's press conference matter more than the decision itself (hold is priced in). Key question: does the median dot shift from 1 cut to 2 cuts for 2026? A dovish shift would immediately lower bridge loan rates (SOFR-indexed) and compress CMBS spreads. Watch for language on "balance of risks."
Mar 26, 2026 · 8:30 AM ET
Durable Goods Orders (February)
Measures new orders for manufactured durable goods. Indicator of business investment and industrial demand.
Medium Impact
Jan 2026
+0.8%
MoM change
Dec 2025
-1.2%
Boeing drag
2025 Avg
+0.3%
Sluggish
Why This Matters for CRE
Durable goods orders drive demand for industrial/warehouse space. Ex-transportation orders are the cleaner signal. Strong orders support industrial cap rate compression and logistics property absorption.
Apr 2, 2026 · 8:30 AM ET
March Jobs Report
First look at Q1 2026 labor market. Key indicator for May FOMC positioning and mid-year rate cut timing.
High Impact
Feb Est.
~155K
Consensus
Jan 2026
143K
Below trend
Mar 2025
170K
Year ago
Why This Matters for CRE
The March report is the first complete picture of Q1 2026 labor trends. It will set expectations for the May FOMC meeting. Weakening labor data = faster rate cuts = lower CRE borrowing costs. Strong data = higher-for-longer.
Apr 10, 2026 · 8:30 AM ET
CPI Report (March)
March inflation data. Trend direction critical for determining if Fed achieves its 2% target by year-end.
High Impact
Feb Est.
~2.3%
Consensus
Jan 2026
2.4%
Sharp drop
Mar 2025
2.8%
Year ago
Why This Matters for CRE
If the Jan-Feb-Mar CPI trend shows sustained sub-2.5% readings, it would be the strongest case for a June rate cut. This three-month window is critical for H2 2026 CRE financing costs. Life company and agency lenders would likely start lowering rate sheets in anticipation.
Commercial Lending Solutions Market Perspective

March 2026 Rate Environment

As expected, the Fed held rates at 3.50-3.75% at the March 18 meeting, the second consecutive hold following the January pause. Chair Powell's press conference struck a measured tone, acknowledging continued progress on inflation while emphasizing the Committee's data-dependent posture. The updated dot plot shifted marginally hawkish, with the median projection now implying one additional cut in 2026 rather than two, pushing consensus expectations for the next move to June or July.

The inflation picture continues to improve. February CPI came in at 2.3% annual, extending the downtrend from 2.9% in December and 2.4% in January. Core PCE, the Fed's preferred gauge, has edged down to approximately 2.6%, moving closer to but not yet at the 2% target. The labor market is cooperating: February nonfarm payrolls came in below 150K, and the unemployment rate ticked up to 4.1%, consistent with the gradual cooling the Fed has been looking for without signaling distress.

For CRE borrowers, the 10-Year Treasury at 4.09% is essentially unchanged from last month and well below the 4.31% level seen in January. This stability has been constructive for permanent financing, life company rates remain the most competitive at 5.40-6.15% for stabilized assets, and CMBS spreads have tightened another 10-15bp quarter-over-quarter. Bridge and construction rates continue to compress as debt fund capital deployment ramps into Q2. We are quoting bridge at S+250-300 for institutional sponsors and construction at S+300-350, both meaningfully tighter than year-ago levels.

The yield curve remains positively sloped with the 2s/10s spread at approximately 62bp, reinforcing the post-inversion normalization theme. However, the long end, the 30-Year at 4.71%, reflects persistent term premium driven by fiscal deficit concerns and Treasury supply dynamics. Borrowers with near-term financing needs should take advantage of the current rate stability; the consensus view is that the 10-Year trades in a 3.9-4.2% range through mid-year, but any upside inflation surprise could reprice that band quickly.

Previous Market Perspectives

The Fed held rates at 3.50-3.75% at the January meeting, and the March decision was widely expected to be another hold. Inflation continued to moderate, January CPI dropped to 2.4%, but the Fed wanted sustained evidence before cutting further. Markets expected the next cut in mid-2026.

For CRE borrowers, the 10-Year Treasury remained range-bound between 3.9-4.3%, and permanent financing rates had stabilized. Life insurance company rates were the most competitive at 5.50-6.25% for stabilized assets, while bank and CMBS spreads tightened approximately 20bp since Q4 2025.

Construction and bridge rates continued to compress as debt fund competition intensified. Bridge rates were available as low as S+275 for strong sponsors, and construction rates at S+325-375 depending on leverage and asset type, a meaningful improvement from the 2024 peak.

The yield curve had fully normalized after its historic 2022-2024 inversion. The positive slope supported the case for economic stability, though elevated long-end yields reflected fiscal deficit concerns and persistent term premium.

The Fed entered the new year with rates at 3.50-3.75% following the December 2025 hold, having delivered 175bp of cumulative cuts since September 2024. December CPI came in at 2.9% annual, a meaningful step down from the 3.0-3.4% range that persisted through most of 2025 but still above the 2% target. The January FOMC meeting was expected to be a straightforward hold as the Committee assessed the lagged impact of prior easing.

The 10-Year Treasury opened January near 4.31%, reflecting upward pressure from Q4 2025 fiscal concerns and heavy issuance. CRE lending markets were cautiously optimistic heading into the year, life company allocations for 2026 opened strong, and several CMBS conduits reported healthy pipelines. Bridge lenders were actively competing for market share, with spreads continuing to drift lower from 2024 highs.

Market consensus at the start of the year called for 50-75bp of additional cuts in 2026, contingent on inflation reaching and sustaining near 2%. The key question was timing: would the data support a June cut, or would the Fed wait until the second half?

The Fed held rates at 3.50-3.75% at the December meeting after delivering a 25bp cut in November, bringing the cumulative easing to 175bp since the September 2024 pivot. The decision to pause reflected a Committee that had moved aggressively and wanted to let the data catch up. The updated Summary of Economic Projections showed a modestly higher terminal rate expectation for 2026, tempering market enthusiasm for rapid further cuts.

CRE markets closed 2025 on a positive note. Transaction volume had picked up meaningfully in Q4 as bid-ask spreads narrowed, particularly in multifamily and industrial. The 10-Year Treasury ended the year near 4.29%, with the 2s/10s spread firmly positive at roughly 50bp, the first sustained positive slope since mid-2022.

Bridge and construction lending markets saw the most competitive conditions since early 2022, with debt funds eager to deploy capital before year-end. The improving rate backdrop and normalizing yield curve set a constructive tone for the year ahead.

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