MBA: 2Q Commercial/Multifamily Originations Up 17%
The Mortgage Bankers Association this morning reported second quarter commercial and multifamily mortgage loan originations came in 17 percent higher than the first quarter and 1 percent higher from a year ago.
The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations said lending picked up among office, industrial, multifamily, retail, and hotel, with the only decrease in health care properties.
“Borrowing and lending backed by commercial and multifamily properties remained strong during the second quarter,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “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.”
2Q Originations 1% Higher from Year Ago
MBA said a rise in second quarter originations for office and industrial led the overall increase in commercial/multifamily lending volumes from a year ago. MBA reported an 11 percent year-over-year increase in dollar volume of loans for office properties, a 9 percent increase for industrial properties, a 1 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, dollar volume of loans originated for commercial bank portfolio loans increased by 33 percent year-over-year. MBA reported a 15 percent year-over-year increase for life insurance company loans, a 3 percent decrease in government-sponsored enterprises (Fannie Mae and Freddie Mac) loans and a 40 percent decrease in the dollar volume of commercial mortgage-backed securities loans.
2Q Originations Up 17% from First Quarter
Second quarter originations for hotel properties increased by 26 percent compared to the first quarter 2016. MBA reported 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, dollar volume of loans for commercial bank portfolios increased by 33 percent in the second quarter; loans for GSEs increased by 29 percent; originations for life insurance companies increased by 28 percent; and loans for CMBS decreased by 33 percent.
To view the report, click https://www.mba.org/Documents/Research/2Q16CMFOriginationsSurvey.pdf.
