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CRE Mortgage Volume Drops 49% Year-Over-Year
Commercial and multifamily mortgage loan originations were 49% lower in the third quarter of 2023 compared to a year ago, and down 7% from Q2, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, released Tuesday.
“Borrowing backed by commercial real estate properties declined again in the third quarter,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Borrowing and lending were down for every property type and capital source from one year ago. However, compared to this year’s second quarter, volumes were more stable, and some sectors – including industrial properties and life company lenders – showed an uptick in volume.”
He added, “Year-to-date CRE mortgage borrowing has fallen 44%, driven by questions about some properties’ fundamentals, uncertainty about property values, and higher and volatile interest rates. Greater certainty around those conditions is a key prerequisite to breaking the logjam of transaction activity.”
- ◦Financing
