A Mortgage Bankers Association (MBA) report showed commercial and multifamily loan originations rose 19 percent in the second quarter of 2022 compared to last year.
The MBA indicated its Quarterly Survey of Commercial / Multifamily Mortgage Bankers Originations also showed a boost in retail, hotel, and multifamily originations spearheaded the overall increase in commercial/multifamily lending volumes.
“Borrowing and lending backed by commercial real estate set another quarterly record from April through June, although the pace of increase slowed from the first quarter,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said. “Property owners, investors, and lenders continue to work through broader economic uncertainty that is affecting the space, equity, and debt markets. MBA is forecasting that borrowing and lending will slow during the second half of the year. That said, improvements in fundamentals and values in recent years provide significant support to properties with outstanding loans and continued financing opportunities for properties whose cash flows can support debt.”
According to the MBA, retail rose by 108 percent, hotels increased by 37 percent, multifamily rose 24 percent, and industrial increased by 3 percent. Office decreased by 11 percent, as did health care by 3 percent.
The survey showed, per the MBA, the dollar volume of loans originated for depositories rose by 102 percent year-over-year while Fannie Mae and Freddie Mac increased by 29 percent. Investor-driven lenders experienced a 12 percent rise.