As home values in the residential markets continue to fall, commercial mortgages are also being affected. It appears as though the amount of new approvals for commercial mortgages is down and rates are now higher than ever. Commercial mortgages are also being affected by the economic downturn and values for these properties are starting to fall as well. Many wonder just how bad the commercial mortgage market, which was though to be immune to these problems, is going to get. Right now, it appears as though the news is not heartening and that the current conditions are going to continue for some time. Until this changes, many in the commercial mortgage industry are holding their breath.David Kuo of Fool.co.uk stated, “With house prices expected to fall by 20 per cent this year, the typical home will cost around £160,000 by December. Consequently, buyers are now in a strong position to drive a hard bargain. ”Over the last decade, house buyers have had to dance to the tune of sellers as house prices rose. However, in a buyer’s market, it is he who pays the piper that calls the tune.”
Related reading: Commercial Mortgages
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