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Fed’s Loan Officer Survey: CRE Lending Standards Are Largely Status Quo
The Federal Reserve reported that “significant net shares” of respondents to its latest Senior Loan Officer Opinion Survey had tightened their standards on commercial real estate lending during 2024’s first quarter. That said, most banks surveyed left their standards basically unchanged quarter-over-quarter for each of three CRE loan types, and Reuters reported that the share of banks that had tightened their standards was the lowest in two years.
“Meanwhile, a moderate net share of banks reported weaker demand for construction and land development loans, while significant net shares of banks reported weaker demand for loans secured by nonfarm nonresidential and multifamily residential properties,” reported the Fed.
Like domestic banks, a significant net share of foreign banks reported tighter standards for CRE loans in Q1. However, the Fed reported, “in contrast to domestic banks, a modest net share of foreign banks reported stronger demand for CRE loans over the first quarter.”
- ◦Financing
