A recent report by S&P Global Market Intelligence about CRE trends moving into 2025 said that bankers will “feel some pain in the CRE books,” especially as borrowers look to refinance and find that task increasingly harder.
The firm’s analysis of national property records found that the average interest rate on loans made in 2024 through August was 6.2%. Maturing loans, however, were an average 4.3%. Refinancing means a nearly 200-basis-point increase. About $950 billion in CRE mortgages were expected to mature in 2024. The number will hit a zenith in 2027 at $1.26 trillion, based on data from CoreLogic, as GlobeSt.com previously reported.
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