No Panic in Lending Markets, As Capital Adjusts to a New Environment
Volatility and uncertainty are apt descriptions for the lending market as we close out 2022. While it is abundantly clear that the mortgage industry remains strong, it faces challenges compared to last year at this time.
Though most lender volumes are down for the year, transactions are still getting done, albeit everyone is working harder to execute. Increased activity is occurring in the fixed-rate bridge and balance sheet bridge lender areas, primarily because borrowers are eschewing floating-rate loans and seeking to avoid purchasing expensive interest rate caps. These loans typically can offer more flexibility and higher leverage compared to cheaper lenders.