The Mortgage Bankers Association released a report which showed that U.S. commercial and multifamily mortgage originations increased by 25 percent during the second quarter when compared to the previous year.
Originations not only increased significantly, but there was a more than 50 percent rise in dollar value for mortgages on retail properties, nearly a 20 percent rise in lending for multifamily setups and 15 percent jump in multifamily properties, according to the MBA's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. There was also an 11 percent improvement in healthcare property loans.
"Commercial and multifamily mortgage lending and borrowing continued to pick up in the second quarter," said Jamie Woodwell, vice president of commercial real estate research for MBA. "Low interest rates and continued stabilization and growth in the commercial real estate markets are helping support new loan originations, and every major investor group increased their lending over the quarter."
The report added that mortgage originations for commercial real estate multifamily properties during the second quarter were nearly 40 percent higher than the level in the first quarter of the year.