Bank credit standards · Federal Reserve SLOOS
Commercial real estate lending conditions
Banks eased commercial real estate standards in the Federal Reserve’s July 2026 loan officer survey. On net, 11.3% of banks eased for commercial property1, 5.7% for multifamily and 3.7% for construction and land, while a net 11.1% saw weaker construction loan demand.
- Commercial property standardsNet 11.3% eased1July 2026 survey
- Multifamily standardsNet 5.7% eased1July 2026 survey
- Construction and land standardsNet 3.7% eased1July 2026 survey
- Construction loan demandNet 11.1% weaker1July 2026 survey
What the July 2026 survey found
The Federal Reserve asks senior loan officers each quarter whether their bank tightened or eased its standards for approving commercial real estate loans and whether demand rose or fell. In July 2026 the summary was plain: Banks reported easier standards and basically unchanged demand for CRE loans (Fed survey, July 2026)2. By loan type, Nonfarm nonresidential: 13.2% of banks eased, 1.9% tightened. Multifamily: 15.1% eased, 9.4% tightened. Construction: 9.3% eased, 5.6% tightened.1 On demand: Demand weakened for construction loans and was basically unchanged for nonfarm nonresidential and multifamily loans2.
Easing from a tight base is still tight. The Fed asked banks where their standards sit within the range they have used since 2005: A significant net share of banks said construction lending standards sit at the tighter end of their range; standards for other CRE loans were relatively tight, but less so than in July 20252. The Board's reading of the same question: Banks report CRE standards remain at the tighter end of their range since 20052.
Twelve surveys of bank CRE standards
Net percentage of domestic banks tightening standards (negative means net easing), and net percentage reporting stronger construction loan demand. At the peak of the last tightening cycle, a net 73.8% of banks were tightening construction standards (April 2023 survey) and a net 65.5% multifamily standards (October 2023). By July 2026 multifamily stood at net 5.7% easing and construction at net 3.7% easing.
| Survey | Multifamily standards | Construction and land standards | Construction loan demand |
|---|---|---|---|
| July 2026 | −5.7 (net eased) | −3.7 (net eased) | −11.1 (net weaker) |
| April 2026 | 0.0 (unchanged) | +4.9 (net tightened) | −11.7 (net weaker) |
| January 2026 | −5.5 (net eased) | +1.8 (net tightened) | +8.9 (net stronger) |
| October 2025 | +1.6 (net tightened) | +6.6 (net tightened) | −4.9 (net weaker) |
| July 2025 | +4.8 (net tightened) | +9.7 (net tightened) | −11.3 (net weaker) |
| April 2025 | +1.6 (net tightened) | +11.1 (net tightened) | −6.3 (net weaker) |
| January 2025 | +3.2 (net tightened) | +9.5 (net tightened) | −6.3 (net weaker) |
| October 2024 | +19.7 (net tightened) | +14.8 (net tightened) | −14.8 (net weaker) |
| July 2024 | +22.2 (net tightened) | +23.8 (net tightened) | −15.9 (net weaker) |
| April 2024 | +33.9 (net tightened) | +24.6 (net tightened) | −16.7 (net weaker) |
| January 2024 | +40.7 (net tightened) | +39.7 (net tightened) | −46.6 (net weaker) |
| October 2023 | +65.5 (net tightened) | +64.9 (net tightened) | −52.6 (net weaker) |
Why a bank can still say no when the survey says easing
The survey is an average across banks. A specific bank's answer depends on its own balance sheet, and for small-balance borrowers that matters more than the national trend. Four constraints produce refusals that have nothing to do with the property:
| Constraint | The rule | What it means for your loan |
|---|---|---|
| CRE concentration screens (banks) | Total CRE at 300% or more of total capital, with 50% or more growth over 36 months3; construction screen: Construction, land development and other land loans at 100% or more of total risk-based capital3. The 100% and 300% thresholds are supervisory screens, not caps on CRE lending3. | The 2006 interagency guidance flags a bank over a screen for closer supervisory review of its CRE risk management, and some banks near a screen slow new investor loans. Ask early whether the bank is adding CRE this year. Loans on owner-occupied commercial property do not count toward the 300% CRE screen3, so owner-users can get a yes where investors get a no. |
| Supervisory LTV limits (banks) | Improved property: 85% maximum LTV for improved (completed, income-producing) property4. Construction: 80% maximum LTV for commercial, multifamily and other nonresidential construction4. Land development: 75% maximum LTV for land development4. Raw land: 65% maximum LTV for raw land4. | These are ceilings in the interagency guidelines, not offers, and most bank credit policies sit below them. Loans above them draw on a capped allowance: Loans above the supervisory LTV limits should not exceed 100% of total capital in aggregate4, and Commercial, agricultural and multifamily loans above the LTV limits should not exceed 30% of total capital4. |
| Member business loan cap (credit unions) | Net member business loans capped at the lesser of 1.75 times actual net worth or 1.75 times the minimum net worth required by the Federal Credit Union Act5. | A credit union near its cap may decline or sell a participation even on a strong deal. Part 723 sets no fixed LTV cap; each credit union's board policy must set LTV limits by collateral type6, so its LTV limit is whatever its board set. |
| Loans to one borrower (credit unions) | Commercial loans to one borrower are capped at the greater of 15% of net worth or $100,000 (plus 10% if fully secured by marketable collateral)6. | Sponsors with several loans at one credit union hit this first. A personal guarantee is not required, but a credit union that skips it must document offsetting mitigants7. |
Banks are not the only lenders
The survey covers banks only. In the loans CBRE closed in the second quarter of 2026 outside the agencies, alternative lenders (debt funds and mortgage REITs) had 38%8, banks 30%8, life companies 21%8 and CMBS 11%8. The MBA's originations survey shows total volume up 16% from Q2 20259, with the mix shifting by lender: CMBS up 68%, depositories (banks) up 61%, investor-driven lenders up 18%, Fannie Mae and Freddie Mac down 17%, life companies down 27%9.
Reading this for your next loan
| If you are | What the survey suggests |
|---|---|
| Refinancing a stabilized apartment building | More banks are easing multifamily standards than tightening. Get at least one community bank or credit union bid next to an agency small-loan quote; see agency versus bank. |
| Financing construction | Standards are roughly flat from a tight level and demand is weak, so equity and pre-leasing requirements are unlikely to loosen soon. For apartments, FHA 221(d)(4) is the main alternative to a bank construction loan. |
| Buying or refinancing retail, office or industrial | Standards for other commercial property eased on net. Banks still apply concentration screens to investor property, so owner-occupied deals clear more easily. |
| Facing a maturity in the next year | Easing helps at the margin, but the size of the new loan is set by today's rate and NOI. Run the refinance gap calculator before the lender does. |
Questions people ask
Are banks lending on commercial real estate right now?
Yes, and more readily than a year earlier. In the July 2026 survey a net 11.3% of banks eased standards on commercial property loans and a net 5.7% of banks eased multifamily standards. Standards are still on the tight side of their long-run range, so easing means fewer outright refusals, not a return to loose terms.
What does a net percentage in the loan officer survey mean?
It is the share of banks that tightened standards minus the share that eased them. A positive number means more banks tightened; a negative number means more eased. For demand it is the share that saw stronger demand minus the share that saw weaker demand.
Does easing mean lower interest rates?
Not directly. The standards question asks whether banks are more or less willing to approve a loan, which shows up as leverage, coverage, recourse and how much documentation they want. The rate is the index plus a spread, and the spread moves with competition and each bank’s own funding cost.
More market data and tools
Sources
- Federal Reserve, July 2026 SLOOS, Table 1 (domestic banks), as of August 3, 2026
- Federal Reserve, Senior Loan Officer Opinion Survey on Bank Lending Practices, July 2026, as of August 3, 2026
- Federal Register 71 FR 74580 (Dec. 12, 2006), OCC/Federal Reserve/FDIC final Guidance on Concentrations in CRE Lending, as of December 12, 2006
- eCFR, 12 CFR Part 365 Appendix A (Interagency Guidelines for Real Estate Lending Policies), as of November 26, 2021
- eCFR, 12 CFR Part 723 (NCUA Member Business Loans; Commercial Lending), as of June 5, 2018
- eCFR, 12 CFR Part 723 (NCUA Member Business Loans; Commercial Lending), as of January 1, 2017
- eCFR, 12 CFR Part 723 (NCUA Member Business Loans; Commercial Lending), as of January 1, 2017
- CBRE Lending Momentum Index, Q2 2026 press release (Aug 3, 2026), as of June 30, 2026
- MBA, Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, Q2 2026, as of June 30, 2026
- Federal Reserve Board, Data Download Program, SLOOS release (net percentage series SUBLPDRCSM, SUBLPDRCSC, SUBLPDRCDC), as of July 2026
How we check figures: methodology and editorial policy.