Favorable mortgage conditions helping CRE improvements

Commercial real estate is improving due to loan affordability.

Housing experts recently noted at a financial summit that the commercial real estate market has been aided by consistent improvements in debt financing and continued low mortgage rates, according to Multi-Housing News.

Experts at the 2012 ULI Spring Meeting said that commercial mortgage backed securities are considered healthy, but these have a lack of demand. Despite this, there is an increasing demand for refinances, and much of this may be due to low mortgage interest rates, the news source reported.

With this in mind, the low rates could affect deleveraging. Many loans are set for maturity in the coming years, according to the news source. As long as this trend continues, financial institutions could be willing to loosen lending restrictions and keep terms affordable. Some experts think that CMBS loans may be set for an active market through 2017. This is due to mortgages from 2007 set to mature on a 10-year schedule.

Favorable mortgage terms for American commercial mortgage loans may help encourage more commercial property managers to take advantage of affordable deals in the short-term.

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