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Commercial Mortgage Originations Up in Second Quarter of 2018

Commercial and multifamily mortgage originations in the second quarter of 2018 are up 4% from the same period last year and increased 32% over the first quarter of 2018, according to the Mortgage Bankers Association’s (MBA)  Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

“Commercial and multifamily real estate borrowing and lending continues to track with last year’s level,” said Jamie Woodwell, MBA’s Vice President for Commercial Real Estate Research. “Investor demand for multifamily properties and hotels are helping push originations higher, even as loan demand for retail properties is down. New loan demand continues to be supported by still-low long-term interest rates, growing property incomes and rising property values.”

Multifamily and hotel property mortgages led the rise in commercial origination volume, according to the survey. Hotel property mortgages saw an increase in dollar volume of 22% year over year, while multifamily mortgages rose 17% from this time last year.

The 32% rise in originations from the first quarter of 2018 was led by hotel and retail properties, with increases of 89% and 87%, respectively. Additionally, the industry saw an increase in dollar volume of 36% for office properties, 25% for multifamily properties and 9% for industrial properties.

With the consistent strength of the market, now is a great time to begin closing commercial mortgages if you haven’t already started. If you’re looking to place a small-balance scenario, all you need to do is submit a completed 1003, a recent credit report with scores and tradelines, a summary of the deal and property photos to APEX. And, if you have any questions, don’t hesitate to give us a call at (877) 604-5304.

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