In the second quarter of 2024, there was a 3% overall increase in commercial and multifamily mortgage loan originations compared to the same period last year. This data comes from the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Additionally, there was a significant 27% increase from Q1 2024.
However, this growth varied significantly among different property types. According to MBA, hotel properties saw an impressive year-over-year increase of 172%, while industrial properties experienced a substantial rise of 77%. Healthcare properties also saw a notable uptick with a 50% increase in originations. On the other hand, retail property originations decreased by7%, multifamily by14%, and office properties by29%.
According to Jamie Woodwell, head of commercial real estate research at MBA,”borrowing and lending for commercial real estate remained subdued during this period.” However,”most capital sources are still eager to lend on viable projects.” The single-asset single-borrower market showed significant growth during this quarter as well.
Woodwell also noted that with interest rates stabilizing and many loans maturing soon,”we can expect more borrower activity in upcoming quarters.”
Overall,the trend for CRE mortgage lending is moving upward slowly but steadily as we enter into Q2of2024.
