Originations in the commercial and multifamily mortgage sector were 1% higher than this time last year and 17% higher than in the first quarter of 2016, according to the Mortgage Bankers Association. The data comes from the organization’s Quarterly Survey of Commercial/Multifamily Mortgage Banker Originations.
“Borrowing and lending backed by commercial and multifamily properties remained strong during the second quarter,” according to Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “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.”
Office and industrial properties lead the pack in terms of increases in originations from this time in 2015. Office property originations increased 11% year-over-year, while industrial properties rose 9%.
Hotel property originations have increased 26% since the first quarter of 2016, the greatest increase in mortgage originations for a specific property type. Multifamily property originations rose 18% from the first quarter and office properties saw an increase of 14 percent. Other origination increases since the first quarter of 2016 include a 7% rise in originations for retail properties and a 2% increase in originations for industrial properties. Read more in our previous post about targeting the multifamily mortgage market.