Skip to main content

Commercial and Multifamily Origination Volume Takes Q3 Drop

Nov 19, 2018
Origination volume for commercial and multifamily properties took a drop in the third quarter, according to new data from the Mortgage Bankers Association (MBA).

Origination volume for commercial and multifamily properties took a drop in the third quarter, according to new data from the Mortgage Bankers Association (MBA).
 
Commercial and multifamily originations were down by three percent from the second to the third quarter and down by seven percent from the third quarter of 2017. Health care properties saw the greatest level of decline with a 55 percent annualized plummet, followed by retail properties with a 28 percent decline, hotel properties with a 19 percent drop and office properties with a 17 percent decrease. The only property sectors that saw upswings in originations last quarter were multifamily and industrial properties, each by 19 percent.
 
Among investor types, the dollar volume of loans originated during the third quarter for commercial mortgage-backed securities (CMBS) loans and commercial bank portfolio loans were down from the third quarter of 2017 by 53 percent and 22 percent, respectively. Loan originations were up four percent for life insurance companies and up three percent for Fannie Mae and Freddie Mac.
 
Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, commented, “Rising interest rates took some wind out of the market’s sails, with the 10-year Treasury yield starting the quarter at 2.87 percent and finishing at 3.05 percent, and the two-year Treasury starting at 2.57 percent and ending at 2.81 percent. The CMBS and bank lending markets were the hardest hit. Meanwhile, lending backed by multifamily properties and for the government sponsored enterprises continued to grow.”

 
About the author
Published
Nov 19, 2018
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024