MBA: First-Quarter Mortgage Originations Up 9 Percent Year Over Year
A rise in mortgage originations for industrial, healthcare and multifamily properties led the overall increase in commercial/multifamily lending volume during the first quarter when compared with the same period a year ago. Source: Mortgage Bankers Association.
WASHINGTON, D.C. — Commercial and multifamily mortgage originations increased by 9 percent during the first quarter of 2017 on a year-over-year basis, according to the Mortgage Bankers Association (MBA).
The results are based on the MBA’s Commercial/Multifamily Mortgage Bankers Originations index, which has tracked quarterly activity since 2002.
The first quarter saw the dollar volume of loans for industrial properties increase by 40 percent compared with the first quarter of 2016. The volume of loans for healthcare and multifamily properties rose by 22 percent and 14 percent, respectively, during the same time frame.
Loan production for all property classes was down 27 percent relative to the fourth quarter of 2016, but that was to be expected, says Jamie Woodwell, MBA’s vice president of commercial real estate research.
“Commercial real estate borrowing and lending started 2017 on much the same footing it ended 2016,” says Woodwell. “Multifamily properties remain the key force behind overall origination trends. Matching, broader investment themes, financing for industrial properties also picked up while retail declined.”
The dollar volume of loans originated by Fannie Mae and Freddie Mac during the first quarter represented a 33 percent increase from the same period a year ago. On the flip side, CMBS loans decreased by 17 percent in the first quarter, while loans originated by life insurance companies remained flat.
— Taylor Williams