The turmoil that drove Silicon Valley Bank, Signature Bank, and First Republic Bank out of business continues to rock the wider commercial real estate market. “Almost two months after the failure of SVB, the picture is quite challenging,” Lofti Karoui, chief credit strategist at Goldman Sachs, wrote in a note this week. Sales of commercial mortgage-backed securities, or CMBS, have fallen off a cliff, induced by rising interest, which has reduced lending volume and rattled lenders. Data from...

If higher mortgage rates and tighter lending standards weren't the dagger for prospective U.S. homebuyers, then recent bank failures would seem to have added new obstacles to closing deals. But according to strategists at Goldman Sachs, the impacts in the residential housing markets from these events are likely be "modest" for potential homebuyers. “To be clear, tighter lending standards will weigh on the residential mortgage sector,” chief credit strategist Lotfi Karoui wrote in a note to...

U.S. stocks moved higher Tuesday following U.S. and European efforts to stabilize the banking system. The S&P 500 (^GSPC) climbed 1.3%, while the Dow Jones Industrial Average (^DJI) gained nearly 1%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) jumped 1.6%. Bond yields are rising, “potentially indicating less of a recessionary impulse from the banking system,” according to the US Market Intelligence team at JPMorgan. The yield on the benchmark 10-year U.S. Treasury note rose...

Homebuilder Lennar (LEN) said Wednesday it is seeing "no disruption" to its mortgage lending business in the wake of recent bank failures and the resulting turmoil in financial markets. "With respect to sales of loans to investors, we have the agencies that we sell to and other parties that are not regional banks," said Bruce Gross, CEO of Lennar Financial Services, on the company's earnings call Wednesday. "We're paying very close attention to that, but no disruption," Gross added. The...