Why are Commercial Real Estate Distress Rates Rising?
May 08, 2024
In this edition of Above the Line, we dive into the current issues impacting commercial real estate, particularly focusing on rising distress rates in CRE collateralized loan obligations.
Let's explore.
Rising CRE CLO Distress Rates
Seeking Alpha
An insightful analysis into why commercial real estate distress rates continue to climb, with multifamily distress notably increasing despite past years of aggressive building and underwriting. The article serves as an indicator of upcoming trends and potential market corrections in the real estate sector.
Lenders Scramble to Buy Back Delinquent Multifamily Mortgage Loans
CRE Daily
As the multifamily mortgage delinquency rates soar, lenders are aggressively buying back loans to mitigate risks and stabilize the market. This strategy reflects the broader challenges facing the commercial real estate market under current economic pressures.
Metro Area Home Prices Rise Despite High Mortgage Rates
Yahoo Finance
Despite the highest mortgage rates in two decades, over 90% of metro areas have seen home prices increase. This highlights the persistent demand and insufficient housing supply in the U.S., raising significant implications for real estate market dynamics.