Commercial/Multifamily Originations Remain Strong
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WASHINGTON, D.C. (July 28, 2016) - According to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2016 commercial and multifamily mortgage loan originations were one percent higher than during the same period last year and 17 percent higher than the first quarter of 2016.
"Borrowing and lending backed by commercial and multifamily properties remained strong during the second quarter," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Low interest rates combined with strong commercial property market fundamentals to further support lending and to keep overall borrowing levels on pace with last year's strong level."
SECOND QUARTER 2016 ORIGINATIONS UP ONE PERCENT COMPARED TO SECOND QUARTER 2015
A rise in originations for office and industrial led the overall increase in commercial/multifamily lending volumes when compared to the second quarter of 2015. The second quarter saw an 11 percent year-over-year increase in the dollar volume of loans for office properties, a 9 percent increase for industrial properties, a one percent decrease for multifamily properties, a 9 percent decrease for retail properties, an 11 percent decrease in hotel property loans, and a 64 percent decrease in health care property loans.
Among investor types, the dollar volume of loans originated for commercial bank portfolio loans increased by 33 percent year-over-year. There was a 15 percent year-over-year increase for life insurance company loans, a 3 percent decrease in Government Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac) loans, and a 40 percent decrease in the dollar volume of Commercial Mortgage Backed Securities (CMBS) loans.
SECOND QUARTER 2016 ORIGINATIONS UP 17 PERCENT FROM FIRST QUARTER 2016
Second quarter 2016 originations for hotel properties increased 26 percent compared to the first quarter 2016. There was an 18 percent increase in originations for multifamily properties, a 14 percent increase for retail properties, a 7 percent increase for office properties, a 2 percent increase for industrial properties, and a 25 percent decrease for health care properties from the first quarter 2016.
Among investor types, between the second and first quarter of 2016, the dollar volume of loans for commercial bank portfolios increased 33 percent, loans for GSEs increased 29 percent, originations for life insurance companies increased 28 percent, and loans for CMBS decreased by 33 percent.
To view the report, please visit the following Web link: https://www.mba.org/Documents/Research/2Q16CMFOriginationsSurvey.pdf