Commercial and multifamily mortgage loan originations were 56% lower in the first quarter of 2023 than a year ago, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Industrial and healthcare properties saw the biggest year-over-year declines, with 42% lower origination activity compared to Q4 2022.
Commenting on this trend, Jamie Woodwell – MBA’s head of commercial real estate research – noted: “Uncertainty and volatility in regard to interest rates and property values has led to a logjam in commercial real estate sales and financing markets. As loans mature or adjustable-rate loans reset we should start getting greater insights into where things stand.”
This downward trend is indicative that CRE loan originations have dropped significantly from their peak levels seen during Q1 2020; reaching their slowest pace since 2014.