Q2 Commercial Mortgage Originations Up 17 Percent

Commercial and multifamily mortgage loan originations saw a 17 percent increase from the first to second quarter of this year, according to new data from the Mortgage Bankers Association (MBA). On a year-over-year measurement, originations rose one percent.

Within the sectors of the commercial space, results were mixed on a year-over-year measurement. There was an 11 percent year-over-year increase in dollar volume of loans for office properties and a nine percent upswing for industrial properties. However, there was also a one percent downturn for multifamily properties, a nine percent drop for retail properties, an 11 percent tumble for hotel property loans and a 64 percent plummet in healthcare property loans. 

But in viewing quarter-by-quarter data, the results were much more positive. Second quarter originations for hotel properties soared by 26 percent compared to the first quarter, while multifamily properties saw an 18 percent increase in originations. Also on the rise were loans for retail properties (14 percent), office properties (seven percent) and industrial properties (two percent). The only negative movement involved healthcare properties, which saw a 25 percent decrease from the first quarter.

"Borrowing and lending backed by commercial and multifamily properties remained strong during the second quarter," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. "Low interest rates combined with strong commercial property market fundamentals to further support lending and to keep overall borrowing levels on pace with last year's strong level."