The commercial/multifamily housing sector has seen a dramatic uptick in activity, with originations rising 52% in the second quarter and jumping 107% from the same period last year, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
According to the MBA, the 107% year-over-year increase was fueled by origination activity for all property types, including a 141% increase in loans for healthcare properties, a 125% spike in loans for hotel properties, a 116% increase in loans for retail properties and a 114% ascension in loans for multifamily properties.
The MBA adds that among investor types, the quarterly increase in loans for conduits for commercial mortgage-backed securities was 210% compared to the first quarter, while loans for commercial bank portfolios saw an increase in loan volume of 41%. The quarterly level in originations for life insurance companies increased 37%, and loans for government-sponsored enterprises were up 20%.
‘Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010,’ says Jamie Woodwell, vice president of commercial real estate research at the MBA. ‘Greater stability in property fundamentals and prices and an improving sales market are providing greater clarity for borrowers and lenders alike. Property values and interest rates – coupled with job growth, consumer spending, household growth and other macro-economic trends that drive demand for commercial real estate – will be keys to how property owners seek and qualify for mortgage financing going forward.’
The MBA's report is now online.
