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CRE Loan Originations Down 47% Year-Over-Year in Q3
Commercial and multifamily mortgage loan originations were 47% lower in the third quarter compared to a year ago, although they were up 12% compared to Q2, the Mortgage Bankers Association said Tuesday. MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations showed decreases for all property types, although steeper for some than for others.
Q3 saw a 94% year-over-year decrease in the dollar volume of loans for hotel properties, an 83% decrease for retail, a 58% decrease for office, a 51% decline for healthcare, a 31% decrease in multifamily and a 23% drop for industrial property loan originations. Conversely, industrial loan volume also saw the biggest improvement over Q2.
“Borrowing and lending backed by commercial and multifamily mortgages remained subdued during the third quarter,” said Jamie Woodwell, MBA’s VP of commercial real estate research. He added that multifamily lending was “buoyed by loans made for Fannie Mae, Freddie Mac and FHA.”
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