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CRE Loan Originations Drop 13% in Q3 from a Year Ago
Commercial and multifamily mortgage loan originations decreased 13% year-over-year in the third quarter of 2022, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. A fall in originations for office, multifamily and retail led to the overall decrease in commercial/multifamily lending volumes
“After a strong first half of the year, rising interest and capitalization rates began to affect deal volume during Q3,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Increasing yields across investment alternatives – including the 10-Year Treasury yield more than doubling during the first nine months of the year – have shifted property financing and values, and it will take time for the market to fully absorb these changes.
“Volatility has been equally impactful, making the sizing of transactions extremely difficult,” he continued. “The result has been the first of what may be many quarters of depressed borrowing and lending activity.”
- ◦Financing
