LIGHTNINGDOCS DATA
April 18, 2024
Bridge Loan Volumes
Q1 2024 loan volumes were up significantly (27%) compared YOY to Q1 2023. It’s not time to pop champagne bottles quite yet as quarterly loan volumes have remained mostly stable last year from Q2 on and if you compare Q2 2023 to Q1 2024 it’s only a 5% increase in volumes.
Bridge Interest Rates
National bridge interest rates dipped from a high of 11.47% in December and are currently at 11.38% in March 2024. Lenders will need to know their markets better at the county level to make rate decisions. However, the spread in interest rates at the county level has been closing in with typically only about 70 bps between lower interest rate MSAs compared to higher interest rate MSAs.
High Yield States
For those that are seeking better yield, the West Coast of the country is below average with only Washington and Arizona producing average interest rates greater than the national average, whereas 14 states on the East Coast are producing average interest rates greater than the national average.
(The labeled states had >11.38% national average with >20 loans in Q1 2024)
(The labeled states had >11.38% national average with >20 loans in Q1 2024)
California Highlights
California remains the largest and most concentrated bridge loan market. The state has multiple counties which have a sweet spot of large average loan amounts and at or above national interest rates. Orange County remains notable with an average loan balance of $670k, average interest rate of 11.69% across 75 transactions in Q1 2024.
