Tuesday, December 18, 2012

Demand for commercial real estate loans on the rise

Investors seem to be showing a great deal of interest in US commercial real estate. The Fed's survey of loan officers is showing rising demand for commercial real estate loans, which has recovered dramatically. Some of this increase is driven by renewed activity in the CMBS market, as search for yield has created more opportunities for property loan securitization. According to JPMorgan, interest-only loans (equivalent to "balloon" mortgage) are on the rise and average loan coupon has been declining.


Source: JPMorgan






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