Commercial real estate lending has been getting tighter through 2023. And according to CBRE, commercial mortgage lending continued to slow last quarter. Its CBRE Lending Momentum Index, which measures the rate at which it originates or brokers commercial loan closings, was down in the second quarter by 5.4% from Q1 and 52.2% down from the same period in 2022.

The index's 100 value is based on average activity in 2005. The current value of under 200 is approaching what has been the low point since June 2016 in what has at times been strong volatility. As a comparison, the high point of activity early in 2022 was nearly 550.

Banks were the top lending group with 43.4% of non-agency loan activity. That's up from 41% in the previous quarter. Of that subtotal, 43% were refinancing, 25% for largely industrial construction, and the remaining 32% for acquisitions.