October Mortgage Rates – Q4 Outlook

It looks like the forecast for rent growth for the full year will come in at between 2.0 and 2.5%.  Moderate growth will continue as demand eases after the absorption of record supply in key markets.  Vacancies rates should remain around 6.2%, which is above long-term averages, but demand should increase in high growth regions like the Sun Belt and Mountain West markets. Acquisitions and investors are becoming more aggressive as interest rates are stabilizing and the spread between asking and acquisition prices have been narrowing.

What Should You Do Now?

Multifamily investment is now considered the premier investment in commercial real estate. M/F starts are on a downward trend, so acquisitions seem more attractive.  As new construction starts have eased, 2026 looks like there will be a market recovery and development of multifamily projects will return to normal.

Current Multifamily Mortgage Rates for September 2025

Conventional Loan Rates:     5.65% - 9.20%               USDA Rates :                  5.70% - 10.20%

Private Banking Rates:           5.55% - 10.25%             Insurance Rates :         5.40% - 7.85%

CMBS Rates :                          5.90% - 7.60%               Bridge Rates :                 6.50% - 13.75%

Fannie Mae DUS Rates :        5.45% - 6.30%              FHA Ins. Rates :              4.90% - 6.25%

Freddie Mac Stnd. Rates :     5.79% - 7.40%               Freddie SBL Rates :    5.75% - 9.25%

Construction Rates :               6.15% - 9.75%             Mezzanine Rates :        7.20% - 12.05%

See why FHA insured rates are always lower, always long term,

always non-recourse and fixed (rate and term) at www.trustlender.com

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 Mr. Panagako has been awarded the certified property manager designation, has managed over 60,000 apartment units and personally financed developments using FHA insurance programs from Alaska to Florida. Previously John had his own property management company and is now the President of Trust Mortgage Company, Inc. He handles origination and processing from his Boston and Long Island offices. Since 1988 Trust Mortgage Company and its affiliates have processed hundreds of FHA and commercial real estate loans as a direct lender and correspondent. Mr. Panagako was appointed to a lobbying group that met quarterly with FHA central office, to plan future housing programs and critique current programs. He was also appointed to the legislative committee of the Mortgage Bankers Association.  He has been on fundraising committees for three colleges and was appointed a trustee and on the executive committee of a theological school and a college in Boston.