LIGHTNINGDOCS DATA
March 21, 2024
Increase in Bridge Loan Volumes
2024 has proven to be a much better year than 2023 for our Lightning Docs users. When analyzing 123 users from January 1, 2023, to February 29, 2024, we observed a significant surge in bridge loan origination volumes. Specifically, January 2024 saw a 29% increase compared to January 2023, while February 2024 experienced a staggering 47% increase over February 2023.
Evaluating Trends and Future Outlook
Before we celebrate too much, we should remember that, in March 2023, volumes skyrocketed by 43% but then remained relatively steady for the rest of the year, with monthly fluctuations up or down 10%. Considering January and February 2024 as an extension of this trend, it appears that the status quo has persisted. February 2024 only reflects a modest 3% increase in volume from March 2023 to demonstrate this point.
Regional Highlights
Nationally, bridge interest rates are coming down. The movement from January 2024 to February 2024 was a substantial almost 20 basis points.
Fulton County, Georgia
For those primarily yield-driven, Fulton County, Georgia remains an MSA with significant market opportunity. In February 2024, the average interest rate stood at 12.19%, nearly 90 basis points higher than the national average. The county also boasted an average loan amount of $406k over 25 recorded loan transactions.
Beaufort County, South Carolina
Another area of interest is Beaufort County, South Carolina, which had a large average loan size of $750k last month. In addition, its average interest rate of 11.82% surpassed both the state and national averages by 38 and 53 basis points, respectively. With its inclusion of Hilton Head Island, Beaufort County presents significant opportunities for real estate investors and private lenders.
