--- title: "CRE Lending Update: Bumps, Adjustments, and a Glimpse of Sunshine" description: Overall, the outlook for CRE lending is cautiously optimistic. The market is adjusting to the new normal, and there are signs of a potential rebound later this year. image: https://m.insigniafs.com/hubfs/Imported_Blog_Media/Capital-Markets-Update-02262024-Facebook-Post.png --- [Skip to content](https://m.insigniafs.com/cre-finance-insights/cre-lending-update-02262024#main-content) ![INSIGNIA 002B67 2023 (200X74 px) Trans](https://m.insigniafs.com/hs-fs/hubfs/INSIGNIA%20002B67%202023%20(200X74%20px)%20Trans.png?width=200&height=74&name=INSIGNIA%20002B67%202023%20(200X74%20px)%20Trans.png) Open main navigation Close main navigation - [Contact us](https://insigniafs.com/contact/) [Contact us](https://insigniafs.com/contact/) Feb 26, 2024 1:59:49 PM # CRE Lending Update: Bumps, Adjustments, and a Glimpse of Sunshine [John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://m.insigniafs.com/cre-finance-insights/cre-lending-update-02262024) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://m.insigniafs.com/cre-finance-insights/cre-lending-update-02262024) [Twitter icon](https://twitter.com/intent/tweet?url=https://m.insigniafs.com/cre-finance-insights/cre-lending-update-02262024) [envelope icon](mailto:?body=https://m.insigniafs.com/cre-finance-insights/cre-lending-update-02262024) #### Real Estate Lending: Bumps in the Road, but a Brighter Future? Things haven’t been easy for commercial real estate lending lately. Higher interest rates, a slowing economy, and stricter loan requirements have thrown some sand in the gears. Refinancing loans is especially tricky, and figuring out property values is a bit of a puzzle right now. **The silver lining**? The forward yield curves suggest a low probability of the U.S. Federal Reserve implementing further rate hikes in 2024. **Here’s the breakdown:** - Multifamily lending is leading the charge, with a predicted 25% jump to $339 billion this year.  - Overall, CRE lending is expected to reach $717 billion, which is still lower than pre-2017 levels, but it’s a step in the right direction. - Experts expect interest rates and borrowing costs to come down a bit, and transaction velocity to rebound by 20% to 30%. That means more deals are likely to happen. - Prices are down: On average, they’ve dropped 28% from their peak. Of course, there will still be challenges. The number of real estate brokers is expected to shrink by 15-20% by year’s end, so competition might get tougher. Overall, the outlook for CRE is cautiously optimistic. The market is adjusting to the new normal, and there are signs of a potential rebound later this year. [CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [Lending](https://m.insigniafs.com/cre-finance-insights/tag/lending), [loans](https://m.insigniafs.com/cre-finance-insights/tag/loans), [Blog](https://m.insigniafs.com/cre-finance-insights/tag/blog), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate), [finance](https://m.insigniafs.com/cre-finance-insights/tag/finance) ## Related posts [![](https://m.insigniafs.com/hs-fs/hubfs/Imported_Blog_Media/grant-ritchie-FBkrQhnLQoY-unsplash-2.jpg?height=200&name=grant-ritchie-FBkrQhnLQoY-unsplash-2.jpg)](https://m.insigniafs.com/cre-finance-insights/negotiating-financing-options) [CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [Lending](https://m.insigniafs.com/cre-finance-insights/tag/lending), [loans](https://m.insigniafs.com/cre-finance-insights/tag/loans), [bridge loans](https://m.insigniafs.com/cre-finance-insights/tag/bridge-loans), [Housing](https://m.insigniafs.com/cre-finance-insights/tag/housing), [FHLMC](https://m.insigniafs.com/cre-finance-insights/tag/fhlmc), [CREF](https://m.insigniafs.com/cre-finance-insights/tag/cref), [FNMA](https://m.insigniafs.com/cre-finance-insights/tag/fnma), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate), [finance](https://m.insigniafs.com/cre-finance-insights/tag/finance) ## [How do you negotiate financing options?](https://m.insigniafs.com/cre-finance-insights/negotiating-financing-options) [John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) Oct 17, 2023 4:18:29 PM Negotiating financing options constitutes a pivotal skill set for both seasoned commercial real... [Read more](https://m.insigniafs.com/cre-finance-insights/negotiating-financing-options) [![](https://m.insigniafs.com/hs-fs/hubfs/Imported_Blog_Media/297199237_564366815386798_1288347445353469872_n-1.jpg?height=200&name=297199237_564366815386798_1288347445353469872_n-1.jpg)](https://m.insigniafs.com/cre-finance-insights/chicago-south-side-multifamily-investor-meetup) [CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [Lending](https://m.insigniafs.com/cre-finance-insights/tag/lending), [apartment](https://m.insigniafs.com/cre-finance-insights/tag/apartment), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate) ## [Chicago South Side Multifamily Investor Meetup](https://m.insigniafs.com/cre-finance-insights/chicago-south-side-multifamily-investor-meetup) [John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) Aug 5, 2022 2:46:32 PM Event registration link – https://bit.ly/sslandlord Join Root Realty and INSIGNIA Financial... [Read more](https://m.insigniafs.com/cre-finance-insights/chicago-south-side-multifamily-investor-meetup) [![](https://m.insigniafs.com/hs-fs/hubfs/Imported_Blog_Media/Walgreens-Edmonds-3-12-14-47.jpg?height=200&name=Walgreens-Edmonds-3-12-14-47.jpg)](https://m.insigniafs.com/cre-finance-insights/single-tenant-net-lease-market-firing-on-all-cylinders-as-cap-rates-hit-historic-lows) [CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [GoInsignia](https://m.insigniafs.com/cre-finance-insights/tag/goinsignia), [Lending](https://m.insigniafs.com/cre-finance-insights/tag/lending), [Housing](https://m.insigniafs.com/cre-finance-insights/tag/housing), [CREF](https://m.insigniafs.com/cre-finance-insights/tag/cref), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate) ## [Single-Tenant Net-Lease Market Firing On All Cylinders As Cap Rates Hit Historic Lows](https://m.insigniafs.com/cre-finance-insights/single-tenant-net-lease-market-firing-on-all-cylinders-as-cap-rates-hit-historic-lows) [John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) Jan 21, 2020 7:50:02 PM Competition among investors for single-tenant net-lease properties intensified last year, sending... [Read more](https://m.insigniafs.com/cre-finance-insights/single-tenant-net-lease-market-firing-on-all-cylinders-as-cap-rates-hit-historic-lows) [facebook-f icon](https://www.facebook.com/GoINSIGNIA) [linkedin-in icon](https://www.linkedin.com/company/insigniafs) [Twitter icon](https://twitter.com/INSIGNIAfs) [instagram icon](https://www.instagram.com/INSIGNIAfs) --- © 2024 INSIGNIA Financial Services, LLC.  All rights reserved. The information provided herein is intended for business users only and is not intended for use by the general public or individual, personal, or household consumers. Programs may be cancelled or modified at any time without prior notice. Programs may not be available in all jurisdictions. These materials are intended to provide general information to the reader. This information is made available with the understanding that INSIGNIA Financial Services, LLC is not engaged in rendering legal, accounting, or other professional services. We use reasonable care in providing information but cannot guarantee accuracy or completeness. Information is provided with no warranty, express or implied, any and all such warranties are expressly disclaimed. We assume no liability for any loss, damage, or expense from errors or omissions in these materials, whether arising in contract, tort, or otherwise. Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. INSIGNIA Financial Services LLC is not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae. We do not conduct business in Alaska, Minnesota, Nevada, North Dakota, South Dakota, Oregon, Utah, and Vermont. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "John Morelli", "url" : "https://m.insigniafs.com/cre-finance-insights/author/john-morelli" }, "dateModified" : "2024-07-17T02:52:07.410Z", "datePublished" : "2024-02-26T19:59:49.000Z", "headline" : "CRE Lending Update: Bumps, Adjustments, and a Glimpse of Sunshine", "image" : [ "https://m.insigniafs.com/hubfs/Imported_Blog_Media/Capital-Markets-Update-02262024-Facebook-Post.png" ], "mainEntityOfPage" : { "@id" : "https://m.insigniafs.com/cre-finance-insights/cre-lending-update-02262024", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://m.insigniafs.com/hubfs/INSIGNIA%20Financial%20Services%20Logo%202026.png" }, "name" : "INSIGNIA Financial Services, LLC" } } ```