MBA: Commercial/Multifamily Borrowing Increases 42% in the First Quarter of 2025
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Commercial and multifamily mortgage loan originations were 42% higher in the first quarter of 2025 compared to a year earlier, and decreased 40% from the fourth quarter of 2024, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Commercial and multifamily mortgage originations posted a strong rebound in the first three months of the year, increasing 42% compared to year-ago levels,” said Reggie Booker, Associate Vice President of Commercial Research with MBA. “The first quarter of the year is typically the slowest, so this level of activity–particularly the strong gains in office, health care, and multifamily lending–signals renewed momentum and growing confidence in key segments of the market. Despite ongoing volatility in interest rates and the broader financial markets, borrowers and lenders are finding opportunities to move new deals forward.”
Originations Increase 42% in the First Quarter of 2025
Compared to a year earlier, a rise in originations for office, health care, and multifamily led to an overall increase in commercial/multifamily lending volumes. There was a 205% year-over-year increase in the dollar volume of loans for office properties, a 159% increase for health care properties, a 39% increase for multifamily properties, and a 30% increase for hotel properties. Originations for industrial properties decreased 2%, and retail property loan originations decreased 3% compared to the fourth quarter of 2024.
Among investor types, the dollar volume of loans originated for depositories increased by 83% year-over-year. There was a 61% increase in loans for life insurance companies, a 37% increase in commercial mortgage-backed securities (CMBS) loans, a 20% increase in government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, and a 12% increase in investor-driven lender loans.
First-Quarter 2025 Originations Down 40% From the Fourth Quarter of 2024
On a quarterly basis, first quarter originations for retail properties decreased 66% compared to the fourth quarter of 2024. There was a 64% decrease in originations for hotel properties, a 43% decrease for industrial properties, a 41% decrease for multifamily properties, and a 34% decrease for health care properties. Originations for office properties increased 44% compared to the fourth quarter of 2024.
Among investor types, between the fourth quarter of 2024 and first quarter of 2025, the dollar volume of loans for GSEs decreased 51%, loans for investor-driven lenders decreased 49%, originations for life insurance companies decreased 40%, loans for depositories decreased 39%, and the dollar volume of loans for CMBS decreased by 6%.
To view the report, please visit: https://www.mba.org/news-and-research/research-and-economics/commercial-multifamily-research/quarterly-commercial-multifamily-mortgage-bankers-originations-index.
