Multifamily, commercial mortgage originations rise significantly

Commercial mortgage originations increased.

Many commercial property managers may have invested in new properties during the second quarter, as multifamily mortgage origination volumes continued to climb, according to the Mortgage Bankers Association.

In all, lending volume for commercial properties rose by 25 percent during the second quarter when compared to the second quarter of last year. However, the figure was 39 percent higher than the origination volume discovered during the first quarter of last year, according to the association's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

"Commercial and multifamily mortgage lending and borrowing continued to pick up in the second quarter," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Low interest rates and continued stabilization and growth in the commercial real estate markets are helping support new loan originations, and every major investor group increased their lending over the quarter."

In the second quarter, dollar volumes lent for retail properties skyrocketed 56 percent more than the same point in 2011, the survey found. When examining the retail volume progress from the previous quarter, the figure jumped nearly 30 percent.

Hotel property mortgage origination volumes rose 22 percent from the same period last year, while it climbed by 147 percent quarter-over-quarter, according to the report. Multifamily properties witnessed a rise of 19 percent from the second quarter of last year, while rising 21 percent from the start of this year.

Office properties had loan volumes rise 15 percent from last year, as well as 66 percent from the previous quarter, according to MBA. Healthcare property mortgage volumes improved by 11 percent year-over-year and 33 percent quarter-over-quarter. The only figure to decline in the second quarter compared to 2011 was industrial property mortgages, which fell 5 percent. However, this figure rose 47 percent compared to the first quarter.

The total dollar volume for commercial bank portfolio loans rose by nearly 60 percent year-over-year, while it improved by 9 percent when looking at quarterly differences, the report added. Loan volumes for Fannie Mae and Freddie Mac rose 50 percent and 28 percent for yearly and quarterly comparisons, respectively. Commercial mortgage-backed securities experienced a 16 percent rise in this department compared to the previous year, while they rose more than 300 percent from the first three months of the year.

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