MBA: Commercial/Multifamily Originations Up in Second Quarter, on Pace With Year Ago

MBA NewsLink Staff

August 21, 2018

Second-quarter commercial and multifamily mortgage loan originations came in 4 percent higher from a year ago and 32 percent higher than the first quarter, the Mortgage Bankers Association reported this morning.

"Commercial and multifamily real estate borrowing and lending continues to track with last year," said MBA Vice President for Commercial Real Estate Research Jamie Woodwell. "Investor demand for multifamily properties and hotels are helping push originations higher, even as loan demand for retail properties is down."

The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations said new loan demand continues to be supported by still-low long-term interest rates, growing property incomes and rising values.

Second-Quarter Originations Up 4 Percent Year-over-Year
A rise in hotel and multifamily property originations led the overall increase in commercial/multifamily lending volumes compared to a year ago. The second quarter saw a 22 percent year-over-year increase in the dollar volume of loans for hotel properties and a 17 percent increase for multifamily properties compared to a 1 percent increase for retail properties, a 4 percent decrease for office properties, a 10 percent decrease in industrial property loans and a 16 percent decrease in health care property loans.

Among investor types, dollar volume of loans originated for government-sponsored enterprises Fannie Mae and Freddie Mac increased by 18 percent year-over-year. MBA reported a 6 percent year-over-year increase for life insurance company loans, a 1 percent decrease in commercial bank portfolio loans and an 8 percent decrease for commercial mortgage-backed securities loans.

Second-Quarter Originations Up 32 Percent From First Quarter
Second-quarter originations for hotel properties increased 89 percent compared to first-quarter 2018. MBA reported an 87 percent increase in originations for retail properties, a 36 percent increase for office properties, a 25 percent increase for multifamily properties, a 9 percent increase for industrial properties and a 9 percent decrease for health care properties from the first quarter.

Among investor types, dollar volume of loans for CMBS increased 79 percent, loans for GSEs increased 33 percent, originations for commercial bank portfolios increased 22 percent and loans for life insurance companies increased by 21 percent.

Click here to download the report.

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