This week’s published rates moved in different directions. That is a reason to check each part of your financing plan—not assume borrowing costs are moving together.
Rates this week
- 30-year fixed mortgage (avg)7.40% +0.12 pts vs. a week earlier
- 15-year fixed mortgage (avg)6.73% +0.13 pts vs. a week earlier
- 10-year Treasury yield5.24% -0.04 pts vs. a week earlier
- Bank prime rate7.00% +0.00 pts vs. a week earlier
Source: Federal Reserve Bank of St. Louis (FRED).
Start with the buyer or refinance exit
According to the Federal Reserve Bank of St. Louis’s FRED data, the longer-term fixed mortgage average rose to 7.40%, up 0.12 percentage points. The shorter-term average reached 6.73%, up 0.13 percentage points.
For builders and fix-and-flip investors, higher mortgage costs can put pressure on buyer purchasing power. Test a slower sale and a lower net exit before setting your acquisition budget. For rental projects, get a current refinance estimate rather than treating published home mortgage averages as commercial loan pricing.
A lower Treasury yield is not a financing quote
The reported Treasury yield slipped to 5.24%, down 0.04 percentage points. That move alone does not establish where a commercial lender will price a deal. Lender spreads, property cash flow and execution risk still matter.
Ask lenders to refresh pricing against the same scope, leverage and closing assumptions. On construction and bridge deals, confirm extension options and the requirements for a takeout loan. Do not build the repayment plan around a future rate decline.
Use steady prime to review cash needs
Bank prime held at 7.00%. For debt tied to prime, an unchanged benchmark does not eliminate payment risk from additional borrowing, a reset or an expiring interest-only period.
Before drawing on a business line or committing cash to equipment, map debt payments against collections and operating expenses. Match financing to the useful life of the asset. Keep working-capital capacity available for operating needs rather than relying on it as permanent project funding.
CFUND helps investors, builders and business owners structure financing nationwide from Salt Lake City. Bring the acquisition, construction or business plan—and a clear picture of how the debt gets repaid.
The CFUND Report is market commentary from the CFUND team, not lending terms or an offer to lend. Every project is different — talk to an advisor about your deal.