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CREFC Sentiment Index Reaches Lowest Level Since Its Inception
The CRE Finance Council (CREFC) Second-Quarter 2022 CREFC Board of Governors’ Sentiment Index found that overall sentiment dropped sharply again, declining 12% from 80.5 in Q1 to 70.7 in Q2.
This was the third-largest drop in the index following a 31% decline in early 2020, the first survey conducted after the pandemic’s beginning, and a 23% decline between Q4 2021 and Q1 of this year. It’s also the lowest level the index has seen since its inception in Q4 2017.
“This most recent survey reflects the caution in the market,” said CREFC Board of Governors chair Leah Nivison, managing director at Goldman Sachs. “Markets are reacting to macro risks, including the Fed’s actions and its ability to minimize the economic impact of higher rates. Lenders are now more selective as they adapt to the challenges of originating loans at higher coupons and lower valuations.”
- ◦Economy
