U.S. Real Estate + Construction Lending Activity

Loan origination has been holding steady since 2024 began.

For both construction and real estate, loan activity began to tick up over 2023 in response to demand for new residential projects. As interest rate hikes caught up and tempered the market, however, activity began to taper off. Interest rates have not changed significantly over the last few months, so origination activity has not changed significantly, either.

We expect this trend to hold for most of 2024. The Federal Reserve has been hinting that it plans to cut interest rates sometime this year, and we expect activity to see a spike when this happens. Demand for housing remains robust (particularly on the West Coast), but has stalled as the cost of building has artificially increased. As interest rates decline, we expect more projects to enter the pipeline and origination activity to increase.

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