Increased borrowing was recorded during the quarter despite a slowdown in sales transaction volume
Loan originations for commercial and multifamily mortgages increased on year-over-year and quarter-over-quarter bases in the third quarter, according to the Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations released by the Mortgage Bankers Association (MBA).
"Borrowing and lending associated with commercial and multifamily real estate increased again in the third quarter, even as sales transaction volume slowed," said Jamie Woodwell, vice president of commercial real estate research at MBA. "Most property types and capital sources saw stronger lending activity than a year earlier, supported by solid property fundamentals and continued property value appreciation."
Originations rose 21% compared to the year-ago quarter, driven by a rise in originations for hotel and healthcare properties. There was a 116% year-over-year increase in total dollar volume for hotel property loans, while the dollar volume for healthcare property loans rose 97%. Dollar volume for industrial, multifamily, office, and retail property loans all increased during the period.
Loans originated for commercial mortgage-backed securities (CMBS) recorded a 42% increase in dollar volume, while loans for government-sponsored enterprises (GSEs) rose 22%. Commercial bank portfolio loans and life insurance company loans posted also posted dollar volume increases during the quarter.
On a quarter-over-quarter basis, originations rose 8%, with originations for health care properties increasing 120%. Dollar volume gains were slower for multifamily properties at 12%, retail properties at 10%, hotel properties at 6%, and office properties at 4%. There was a 25% quarterly decline in industrial property originations.
The dollar volume of loans for GSEs increased 31% over the same period, while commercial bank portfolios loans rose 15%. Originations for CMBS increased 4%, and loans for life insurance companies decreased by 4%.
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