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Commercial Mortgage Originations Remain Steady Year-Over-Year

Commercial and multifamily mortgage originations for the first nine months of 2016 are up 2% from this time last year, according to a press release from the Mortgage Bankers Association (MBA). Commercial and multifamily originations for the third quarter of 2016 rose 5% from the same quarter last year and were up 7% from the second quarter of 2016.

“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 Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.

Woodwell continued,

“Through the first nine months of the year, borrowing and lending backed by commercial real estate is running two percent ahead of last year’s pace. 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.”

Industrial and multifamily originations contributed to the rise in commercial lending volume from the third quarter of 2015 to the third quarter of 2016. A 32% year-over-year increase in the dollar volume for industrial property loans, as well as a 26% increase for multifamily property loans, led to the overall increase.

Additionally, industrial property originations rose 20% from the second quarter of 2016. There was also a 19% increase in originations for health care properties, an 18% increase for both multifamily and office properties and an 8% increase for retail properties.

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