Fed survey: banks tightened multifamily lending standards and saw weaker demand last quarter

Banks tightened standards on multifamily loans and reported weaker demand for them in the Federal Reserve's October 2026 Senior Loan Officer Opinion Survey, CRE Daily reported. The pullback covered every major commercial real estate category, including construction and land development, and reversed the April survey, when large banks had eased multifamily terms. Banks also reported pulling back from lending to nonbank financial firms such as private equity and private credit funds.