Morning Briefing: Strong pace for commercial mortgages in second quarter

by Steve Randall05 Aug 2015
Strong pace for commercial mortgages in second quarter
Commercial/multifamily mortgage originations continued a strong pace in the second quarter of 2015 according to figures from the Mortgage Bankers’ Association. Originations were 16 per cent higher than this year’s first quarter and 29 per cent higher than the second quarter of 2014. The strongest property type by dollar volume year-over-year was multifamily buildings where loan originations increased by 58 per cent in Q2 2015 compared to the same period last year. The strongest property type by dollar volume quarter-to-quarter was retail which surged 81 per cent.

"Driven by increasing property values, improving property fundamentals and still low interest rates, commercial and multifamily lending and borrowing continued its strong pace in the second quarter," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The rate of year-over-year growth slowed from the first quarter, but year-to-date lending is up for every major lender group.  Mortgage bankers' originations for Fannie Mae and Freddie Mac are near record quarterly levels."
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