Everyone in CRE knows that a credit crush has been developing. The Federal Reserve's ongoing increases of the benchmark federal funds rate has pushed up short-term rates, affecting construction and bridge loans. Refinance costs have been on the rise while banks tighten their terms. Quantitative tightening has also had a dampening effect on MBS, CMBS, and CMO markets.

The question is whether the Fed's efforts to reduce inflation might have started a credit crunch on its way to the rest of the economy, as part of the debate over whether there would be a soft landing or some degree of crash. And whether that would have a negative impact on the businesses and consumers who pay the rents that provides the revenue to the CRE industry.

St. Louis Federal Reserve Bank President James Bullard noted in a speech to the Arkansas Bankers Association a return of financial stress to banks. He listed as evidence Signature Bank, Silicon Valley Bank, and Silvergate Capital being closed, and Credit Suisse being sold with Swiss government assistance to UBS. He didn't mention First Republic Bank's rescue by 11 major banks providing deposits to ensure liquidity.