Jan
24
A $90 Billion Debt Wave Shows Cracks in U.S. Property Boom
By-
Commercial mortgages from 2007 are set to mature this year
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Borrowers face higher interest rates, refinancing challenges
A $90 billion wave of maturing commercial mortgages, leftover debt from the 2007 lending boom, is laying bare the weak links in the U.S. real estate market.
It’s getting harder for landlords who rely on borrowed cash to find new loans to pay off the old ones, leading to forecasts for higher delinquencies. Lenders have gotten choosier about which buildings they’ll fund, concerned about overheated prices for properties from hotels to shopping malls, and record values for office buildings in cities such as New York. Rising interest rates and regulatory constraints for banks also are increasing the odds that borrowers will come up short when it’s time to refinance…
A $90 Billion Debt Wave Shows Cracks in U.S. Property Boom
