Search
 

Regulators Watch Banks and Life Insurers on CRE Exposure

Investors are also scrutinizing the risk.

By Erik Sherman | November 25, 2024 at 06:19 AM

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 of 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 covered.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.