Commercial and multifamily mortgage originations shot up nearly 30% year-over-year in the third quarter
Commercial and multifamily mortgage originations shot up nearly 30% year-over-year in the third quarter, according to a report released Friday.
“Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter,” said Jamie Woodwell, vice president of commercial real estate research for the Mortgage Bankers Association. “Mortgage origination volumes were essentially flat from the second quarter, but were up 29 percent from last year’s third quarter and are up 14 percent year-to-date. Lending by life insurance companies remained near last quarter’s record pace, while lending for the GSEs dropped by more than a third.”
The rise was driven in large part by an increase in originations for health care properties. The third quarter saw a 124% year-over-year spike in the dollar volume of loans for health care properties, along with a 69% increase for office properties, a 46% increase for hotel properties, a 30% increase for retail properties, an 8% increase for industrial properties and a 3% increase for multifamily properties, according to MBA’s quarterly survey.
Year-to-date commercial and multifamily originations were also up, rising 14% from the same time period in 2012. Hotel properties saw a 25% year-to-date increase, while there was a 20% increase for multifamily properties and a 19% increase for health care properties.