December 2024 Multifamily Mortgage Rate Update: Insights from Top Chicago Multifamily Experts

Posted on by Randolph Taylor
December 2024 Multifamily Mortgage Rates Overview

Introduction
For multifamily property owners in the Chicago area, staying informed about mortgage rate changes is critical for making strategic investment decisions. As one of the top Chicago multifamily experts, our team at eXp Commercial specializes in helping clients navigate the complexities of real estate investment. Whether you’re buying, selling, or refinancing, understanding financing trends can directly impact your strategy. Here’s the latest update on multifamily mortgage rates from our Capital Markets partner, CommLoan, and actionable insights from your trusted Chicago multifamily investment broker.

December 2024 Multifamily Mortgage Rates Overview

The latest multifamily mortgage rates reveal notable trends that may affect decision-making for property owners and investors:

Bank Loans

  • 5-Year Fixed: 6.13%, down by 17 basis points.
  • 7-Year Fixed: 6.10%, down by 16 basis points.
  • 10-Year Fixed: 6.06%, down by 15 basis points.

Bank loans are a reliable option for medium-term financing, especially with the recent rate decreases.

Agency Loans

  • 5-Year Fixed: 5.71%, up by 8 basis points.
  • 7-Year Fixed: 5.79%, up by 6 basis points.
  • 10-Year Fixed: 5.65%, up by 3 basis points.

Agency loans remain a popular choice for larger, long-term investments, despite slight rate increases.

Agency SBL Loans

  • 5-Year and 7-Year Fixed: Both stand at 6.64%, up by 5 basis points.
  • 10-Year Fixed: 6.54%, up by 5 basis points.

Designed for smaller properties, Agency SBL loans remain a valuable option, even with minor increases.

CMBS Loans

  • 5-Year Fixed: 6.97%, no change.
  • 7-Year Fixed: 6.92%, no change.
  • 10-Year Fixed: 6.62%, no change.

CMBS loans are ideal for large-scale projects requiring flexible repayment terms.

How These Rates Impact Chicago Multifamily Investments

As one of the top Chicago multifamily experts, we understand how mortgage rate changes influence buying and selling strategies. Here’s how these trends may affect you:

Refinancing Before Selling

With bank rates dropping, some property owners may consider refinancing to improve cash flow or extend their holding periods until the market becomes more favorable for selling.

Attracting Buyers

Rising agency and SBL rates could affect buyer financing options, impacting purchasing power. Sellers can benefit by anticipating these changes and tailoring their listing strategies accordingly.

Maximizing Property Value

Even with rising rates in some categories, Chicago’s multifamily market remains highly competitive. Working with a seasoned Chicago multifamily investment broker ensures your property is positioned effectively to attract serious buyers and secure top offers.

Why Work with a Chicago Multifamily Investment Broker?

As a trusted advisor and one of the top Chicago multifamily experts, I offer tailored strategies to maximize the value of your multifamily property. My services include:

  • Accurate Valuations: Comprehensive assessments based on real-time market data.
  • Targeted Marketing: Campaigns designed to reach motivated, qualified buyers.
  • Strategic Negotiation: Expertise in securing the best possible terms while ensuring a smooth transaction process.

In collaboration with CommLoan, I also provide insights into financing solutions aligned with the latest market trends. This ensures my clients make informed decisions whether they’re selling, refinancing, or holding assets.

Schedule a Call with Randolph Taylor, Your Chicago Multifamily Investment Broker

If you’re considering selling your multifamily property or exploring refinancing options, I’m here to help. Let’s discuss how today’s mortgage rates and market trends can shape your investment strategy.

Schedule a discovery call with Randolph Taylor, MBA, CCIM to explore opportunities for listing and maximizing your property value.

Contact Information

Randolph Taylor, MBA, CCIM
Senior Associate | Multifamily Sales Broker
eXp Commercial | National Multifamily Division
📞 (630) 474-6441
📧 [email protected]

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