Multifamily, commercial mortgage loans jump 34% in 2Q14
But still down 2% from 2013
Multifamily and commercial mortgage loan originations reversed a weak first quarter and rose 34% in the second quarter of 2014, according to the Mortgage Bankers Association’s quarterly survey of commercial/multifamily mortgage bankers originations.
In the first quarter of this year, commercial and multifamily originations dropped 45% from the fourth quarter of 2013 and were down 1% from the first quarter of 2013.
The second quarter saw a reversal of the first quarter’s drop but the originations still came in 2% under the second quarter of 2013, driven by a decrease in originations for retail and multifamily properties, the MBA said.
“Year-to-date borrowing by commercial and multifamily real estate owners is running at the same pace as last year,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Low interest rates and improving property fundamentals are prompting borrowers to act, but the relatively low volume of loans hitting maturity is checking overall demand.”
Multifamily originations were down 10% over 2013’s second quarter, but up 32% over the first quarter of 2014.
According to the MBA’s report, the volume of loans originated by Fannie Mae and Freddie Mac decreased by 13% from last year’s second quarter, but were up 99% from the first quarter of 2014.