Commercial, multifamily originations show mixed signals in third quarter

Origination levels were higher during the third quarter compared to the same point last year.

Fewer property management companies and investors took out loans for commercial and multifamily properties during the third quarter, the Mortgage Bankers Association explained.

The origination level fell 17 percent in the third quarter from the previous three months, while it was also 7 percent below the same quarter last year. Despite these drops, the figure for the first three quarters of this year was 15 percent higher than last year's year-to-date level, the MBA's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations explained.

"Even though low interest rates continue to make borrowing extremely attractive, a moderate pace of commercial property sales transactions and a continued drop in the volume of commercial mortgages maturing limited the overall amount of commercial mortgage loans originated," said Jamie Woodwell, vice president of commercial real estate research for the MBA.

When looking quarterly, the retail market experienced a 43 percent drop in originations, the report added. Additionally, the office market fell nearly 30 percent and hotels declined 12 percent. However, multifamily properties rose 7 percent during that period.

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