WASHINGTON, D.C. — In the third quarter, there was a 98 percent increase in commercial and multifamily loan origination volume compared to the third quarter of last year and a 10 percent increase compared to the second quarter of this year, according to the Mortgage Bankers Association’s (MBA) “Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”
“Lending on commercial and multifamily properties continues,” said Jamie Woodwell, vice president of commercial real estate research at MBA, in a statement. “Mortgage originations by life company portfolios hit another new record in the third quarter, and lending by bank portfolios and Fannie Mae and Freddie Mac also picked up. Mortgage originations for the CMBS market, which was caught up in the global economic uncertainty of recent months, declined from last quarter, but were higher than last year’s third quarter level.”
According to the survey, most property types saw an increase in activity in the third quarter of this year compared to last year. Hospitality had the largest increase in loans at 406 percent. Retail loans followed with 164 percent and office loans were third with 103 percent. Additionally, multifamily loans were up 39 percent. Two commercial sectors had a decrease in activity. Health care property loans decreased by 8 percent and industrial property loans fell 3 percent.
Compared to the second quarter of this year, retail, office and hotel saw increases of 37 percent, 8 percent and 4 percent, respectively. Again, health care and industrial took the largest hits. Health care decreased by 30 percent and industrial by 14 percent. Multifamily also fell 2 percent.
To view the entire survey, visit MBA's website.
– Savannah Duncan