The FT reported that while the percentage of nearly $2 trillion in CRE loans banks have lent and fallen into delinquency. It's still $26 billion, a 25% increase during the first three quarters of 2024. A Moody's examination found banks offered little in payment breaks. Instead, borrowers could delay missed payments. "They are kicking the can down the road," Ivan Cilik, a principal with accounting firm Baker Tilly's financial services group, told the FT. "I think lenders are trying to work out the problems with these loans, but if rates don't come down borrowers are not going to be able to make payments." "We are in the early part of the curve," Cilik said. "If we continue to see rising delinquencies, we will know that these modifications are just not working out." And Fed Chair Jerome Powell made clear in the press conference after this week's meeting of the Federal Open Market Committee, that there is no rush to drive down interest rates. The cavalry is not mounting their steeds for a furious ride to the rescue. https://lnkd.in/eggV4NX8