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CRE Lending Volume Increases 59% Year-Over-Year
Commercial and multifamily mortgage loan originations increased 59% year-over-year in the third quarter of 2024 and increased 44% from Q2 2024, the Mortgage Bankers Associations (MBA) said Friday. Loan volume rose for all property types except office, which saw a 3% Y-O-Y decrease. Dollar volume for healthcare loans rose 510% Y-O-Y, while hotel loans were up 99%, retail rose 82%, industrial rose 57% and multifamily increased 56%.
“After a slow start to the year, borrowing and lending backed by commercial real estate properties picked up during the third quarter,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Lower interest rates were a key driver of the increase, with the yield on the ten-year Treasury bond dropping during the quarter from an average of 4.31% in June to 3.72% in September. Long-term rates have increased more recently, which could slow last quarter’s momentum.”
He continued, “Each property and loan is unique and faces a different situation depending on its property type, market, submarket, vintage, business plan and more. All those factors will play a role in the volume of borrowing/lending in coming quarters.”
- ◦Financing
