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According to CBRE, the commercial real estate lending market is showing signs of stabilization. On Monday, it was reported that borrowing costs have reached their peak and transaction activity remains subdued.

The latest CBRE Lending Momentum Index revealed a 3.0% decline in loan closings compared to the second quarter and a significant drop of 47.9% from last year’s third quarter when loan volume was strong. The index closed Q3 at 187.

CBRE’s U.S President of Debt & Structured Finance, James Millon stated that while there are still challenges in the capital markets, there are indications that lending conditions may be stabilizing for certain asset classes. He also noted that credit is slowly becoming more accessible and cap rates are increasing while the Fed’s rate hikes may soon come to an end – all factors which could potentially lead to an increase in deal volume during the latter half of next year.

This post originally appeared on Connect CRE .