Multifamily Mortgage Rates January 2026

      Seniors Market Prime for Development

The senior rental market is heading into 2026 with some of the strongest numbers it’s ever seen. Overall occupancy is close to 90%, mainly because demand is rising fast as the oldest baby boomers turn 80 and the population aged 75 and older keeps growing. Independent Living communities are now above 90% occupancy, and Assisted Living is over 87%, showing steady move‑ins and fewer people moving out.

New construction is still extremely limited, with inventory only growing by about 0.7%—the lowest level ever recorded. High building costs, fewer available contractors, and stricter lending rules have slowed development, creating a clear gap between supply and demand that’s expected to continue through 2026.

Rents are still climbing at above‑average rates, with annual increases over 4% in both Independent and Assisted Living. Operators are able to keep raising prices because demand is strong and there aren’t many new units being built, even though expenses like labor, insurance, and utilities remain high.

Capital markets are starting to open back up, with better liquidity and tighter spreads, generally around 200–325 basis points depending on the type of property.  Construction loans are available at about 60–65% loan‑to‑cost, except for FHA insured at 87% LTC. Investors expect slight cap‑rate compression as more capital returns to the industry.

There are still challenges—especially affordability for middle‑income seniors, staffing shortages, and older buildings that need upgrades. But overall, strong demographics and limited new supply make 2026 look like a strong year for senior rentals, with solid revenue growth, lower lease‑up risk, and long‑lasting demand.  General market conditions are general.  All real estate markets are local.

Current Multifamily Mortgage Rates for January 2026

Conventional 10 yr Rates:               5.10% - 7.75%                  USDA Rates :                       5.27% - 9.54%

Private Bank 10yr Rates:                    5.15% - 8.65%                   Ins. Rates 10yr:                     5.20% - 8.50%

CMBS 10 yr Rates :                            5.70% - 7.60%                    Bridge Rates 2yr :                5.85% - 12.50%

Fannie Mae 10yr Rates :                    5.40% - 6.25%                   FHA Ins. Rates :                  4.75% - 6.15%

Freddie Mac Stnd. Rates :                 5.65% - 9.15%                   Freddie SBL Rates :             5.75% - 9.25%

Construction Rates 2yr :                    5.55% - 8.50%                   Mezzanine Rates :                6.35% - 10.00%

You can find out more here: https://www.trustlender.com 

Or Call John at 800-536-3371 (800-LENDER-1) ext:1011