The quantity of business and multifamily mortgage mortgage originations jumped 72 % within the first quarter of 2022 in comparison with a 12 months earlier. The Mortgage Bankers Association (MBA) mentioned lenders reported stable will increase in all classes of that lending with resort properties main the best way at 359 %. While multifamily lending was in fifth place, it nonetheless grew 57 %, behind industrial properties at 145 %, retail and well being care properties (88 and 81 %, respectively.) Office properties lending elevated 30 %.

Commercial and multifamily mortgage quantity was down by 39 % in comparison with the fourth quarter of 2021, however MBA mentioned the quarter-over-quarter change was consistent with seasonal traits.

“The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 carried into the first quarter,” mentioned Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The continued growth in lending activity is the result of the ongoing strong demand for certain property types like industrial and multifamily, as well as renewed interest in other property types that saw more dramatic declines during the early stages of the pandemic, such as hotel and retail.”

“It’s likely that the rise in interest rates will take some wind out of the sails of borrowing in upcoming quarters, but strong market fundamentals, property values and investor interest should continue to support the market,” he mentioned.

Activity additionally accelerated for all investor sorts with the greenback quantity of loans originated for depositories gaining essentially the most at 194 % year-over-year. Life insurance coverage firm portfolios grew 81 %, investor-driven lenders funding rose77 %, and Commercial Mortgage-Backed Securities (CMBS) elevated 56 %. However, funding by Fannie Mae and Freddie Mac (the GSEs) rose only one %.

The largest quarter-over-quarter decline in originations was within the workplace class, down 48 %. Multifamily lending fell 41 %, resorts 38 %, retail 32 %, and industrial 29 %. The solely improve from the 4th quarter was for well being care properties which rose by 17 %.

Among investor sorts, the greenback quantity of loans for CMBS decreased 61 %, loans for depositories declined 41 %, originations for GSEs have been down 39 %, investor-driven lenders decreased 30 %, and life insurance coverage firm loans decreased 23 %.

 

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