According to a new report released by Freddie Mac, one of the leading lenders in the US, rates for commercial mortgages appear to be holding steady, at least for now. There is usually much less risk in the commercial mortgage market and banks are not seeing the kind of defaults there as they are in the regular housing market. Freddie Mac vice president and chief economist Frank Nothaft said, “This week saw little change in mortgage rates on mixed news of higher inflation and a weaker housing market.”Additionally, in its most recent policy committee statement on April 30, the Federal Reserve (Fed) indicated it expects inflation to moderate in coming quarters but uncertainty about the outlook for inflation remains high. However, the Fed did note that financial markets remain under considerable stress and tight credit conditions, along with the deepening housing contraction, are likely to weigh on economic growth.”"Even with the credit crunch hitting mid-year, 2007 still set a record for commercial/multifamily mortgage originations,” said Jamie Woodwell, MBA’s Senior Director of Commercial/Multifamily Research. “The 2007 numbers show both the importance of the commercial mortgage-backed securities (CMBS) market to commercial real estate finance and the depth of other funding sources, such as banks and thrifts, life companies, Fannie Mae, Freddie Mac and others.”
Related reading: Commercial Mortgages
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