February 2, 2024

Expect bank lending to continue on the same trajectory during the first two quarters this year, with some improvements in Q3 and Q4 following the Federal Reserve lowering the overnight lending rates. As the year progresses, more and more banks will re-enter the market for new borrower relationships. Banks will especially be drawn to acquisitions with fresh equity coming in and where there is a resetting of the property value. Refinances will be more challenging because of higher rates. Banks will be really focused on sponsorship and borrower relationships. More