This article, originally titled “Chicago Multifamily Mortgage Rates – February 2026 Market Update,” was first published by Randolph Taylor, CCIM, Advisor, eXp Commercial. 

As we settle into 2026, Chicago multifamily mortgage rates are stabilizing with incremental compression across agency and bank executions. Capital markets are gradually progressing, providing apartment owners and investors with renewed clarity heading into 2026.

This update outlines current multifamily mortgage rates in Chicago and what they mean for refinancing, acquisitions, and valuation strategy.

February 2026 Multifamily Mortgage Rates

Loan Type	5-Year	7-Year	10-Year
Bank	5.94% ▼ 0.21	5.95% ▼ 0.21	6.01% ▼ 0.12
Agency	4.68% ▼ 0.24	4.82% ▼ 0.23	4.88% ▼ 0.19
Agency SBL	6.34% —	6.34% —	6.24% —
CMBS	6.85% ▼ 0.02	6.80% ▼ 0.02	6.50% ▼ 0.02

Source: CREConsult Capital Markets | February 2026. Benchmark references: CommLoan Multifamily & Commercial Mortgage Indices

Why Chicago Multifamily Mortgage Rates Matter

Debt costs directly impact:

• Property valuation
• Cap rate spreads
• Cash flow
• Refinance feasibility
• Acquisition underwriting

With Chicago multifamily mortgage rates showing measured compression, owners now have a clearer window to structure long-term fixed-rate debt before potential Treasury volatility later in 2026.

Current Lending Trends Impacting Chicago Multifamily Owners

1. Agency Loans Lead on Pricing

Agency multifamily mortgage rates in Chicago remain the most competitive:

• 5-Year: 4.68%
• 7-Year: 4.82%
• 10-Year: 4.88%

The spread advantage versus CMBS (over 200 basis points on 5-year terms) reinforces agency dominance for:

• Stabilized Class A and B multifamily
• Institutional-quality assets
• Suburban core markets
• Non-recourse executions

Fannie Mae and Freddie Mac programs continue to attract capital due to stability and flexible amortization structures.

2. Bank Multifamily Rates Tighten Modestly

Chicago bank multifamily mortgage rates are now:

• 5-Year: 5.94%
• 7-Year: 5.95%
• 10-Year: 6.01%

While pricing has improved by approximately 20 basis points, underwriting remains disciplined:

• DSCR above 1.25x
• Leverage typically 60–65% LTV
• Strong sponsor liquidity required

Banks are competitive on stabilized mid-market properties but cautious on transitional assets.

3. Agency SBL Supports Smaller Assets

Agency Small Balance Loan (SBL) pricing remains stable:

• 5- and 7-Year: 6.34%
• 10-Year: 6.24%

This channel continues to support:

• 5–50 unit apartment buildings
• Workforce housing
• Suburban Chicago markets such as Aurora, Naperville, and Glen Ellyn

SBL remains attractive due to non-recourse options and simplified execution.

4. CMBS Rates Hold Steady

Chicago CMBS multifamily mortgage rates:

• 5-Year: 6.85%
• 7-Year: 6.80%
• 10-Year: 6.50%

Slight tightening suggests improving bond market stability, though pricing remains elevated relative to agency.

Best suited for:

• Large portfolios
• Cross-collateralized structures
• Higher leverage scenarios
• Long-term hold strategies

Fundamentals Remain Resilient

Debt markets are stabilizing while fundamentals remain strong:

• Sub-4% vacancy in core submarkets
• Steady renter demand
• Moderate but sustainable rent growth
• Controlled new supply relative to national averages

Chicago multifamily mortgage rates are now predictable instead of volatile, restoring transaction confidence.

Strategic Outlook for Chicago Apartment Owners

Owners should evaluate:

• Refinancing maturing 2026–27 debt
• Locking fixed-rate loans before Treasury shifts
• Recapitalization opportunities
• Strategic dispositions into improved liquidity

Debt structure is now a competitive advantage.

Work With a Chicago Multifamily Specialist

If you are considering refinancing, selling, recapitalizing or evaluating your portfolio value, a structured review of your asset and current Chicago multifamily mortgage rates can clarify the optimal strategy.

This article, originally titled “Chicago Multifamily Mortgage Rates – February 2026 Market Update,” was published by Randolph Taylor on creconsult.net. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views, opinions, or official policies of eXp Commercial or its affiliates. The content is provided for informational purposes only and should not be construed as legal, financial, or professional advice.