Multifamily mortgage originations grew 49% over last year during the fourth quarter as commercial originations overall soared above 2011 levels, the Mortgage Bankers Association said in a new report Monday.
The jump in originations occurred as low interest rates prompted more borrowers to finance multifamily properties and as strength in the commercial and multifamily mortgage segment fueled investor appetite, said Jamie Woodwell, vice president of commercial real estate research at the MBA.
In just the fourth quarter of 2012, commercial and multifamily mortgage originations were up 49% from the third quarter, with hotel property originations soaring 99% quarter-to-quarter, while multifamily properties experienced a 48% increase in originations between the two quarters.
Health care property loan originations and office properties also grew 57% and 44%, respectively.
Among investor types, loans tied to conduits for CMBS saw a 141% jump in loan volume between the third and fourth quarter, while the government-sponsored enterprises saw multifamily volumes increase by 54%.
Originations for life insurance companies went up 33%, while loans for commercial bank portfolios increased 32%.
The report follows on the heels of Freddie Mac noting that its multifamily business volume — including both loan purchases and bond guarantees — reached a record of $28.8 billion, or a 42% increase, compared to $20.3 billion in 2011.
Fannie Mae also noted Monday it provided the multifamily market with $33.8 billion last year, marking the third highest acquisition year in its history.