After Q2 this year, the Mortgage Bankers Association projected a drop of 18% in commercial and multifamily lending compared to 2021. They were right.
At least, that's what CBRE says. "The Federal Reserve's hawkish stance to reduce inflation resulted in higher borrowing costs, more conservative underwriting and lower loan closing volume in Q3," the organization wrote. "The CBRE Lending Momentum Index fell by 11.1% quarter-over-quarter and 4.7% year-over-year in Q3."
Some more details: Spreads widened on 55%-to-65%-loan-to-value (LTV) fixed-rate permanent loans running from seven to 10 years in length. "seven-to 10-year," the analysis said.
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