MBA: 3Q Commercial/Multifamily Originations Up 2% From Year Ago

Commercial and multifamily mortgage loan originations for the first nine months of 2016 increased by 2 percent compared to the same period a year ago, the Mortgage Bankers Association reported this morning.

The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations also reported third quarter commercial/multifamily mortgage loan originations rose by 5 percent higher from a year ago and by 7 percent from the second quarter.

“Rising property values, robust property fundamentals, low interest rates and a strong transaction market continue to drive potentially record setting paces in commercial and multifamily mortgage originations,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Originations for bank balance sheets, life companies and Fannie Mae and Freddie Mac are all running ahead of last year’s record paces. And after a slow start to the year, the commercial mortgage backed securities market also saw a pick-up in the third quarter.”

3Q Originations Up 5% From Year Ago
A rise in originations for industrial and multifamily led the overall increase in commercial/multifamily lending volumes compared to a year ago. MBA reported a 32 percent year-over-year increase in dollar volume of loans for industrial properties, a 26 percent increase for multifamily properties, a 5 percent decrease for office properties, a 23 percent decrease for retail properties, a 30 percent decrease in hotel property loans and a 59 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 82 percent year-over-year. MBA reported a 3 percent year-over-year decrease for life insurance company loans, a 4 percent decrease in commercial mortgage-backed securities loans and a 9 percent decrease in dollar volume of commercial bank portfolio loans.

3Q Originations Up 7% from 2Q
Third quarter originations for industrial properties increased by 20 percent compared to the second quarter. MBA reported a 19 percent increase in originations for health care properties, an 18 percent increase for multifamily properties, an 18 percent increase for office properties, an 8 percent increase for retail properties and a 44 percent decrease for hotel properties from the second quarter.

Among investor types, dollar volume of loans for CMBS increased by 96 percent from the second quarter; loans for GSEs increased by 35 percent; originations for life insurance companies decreased by 4 percent and loans for commercial bank portfolios decreased by 25 percent.

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