Commercial and Multifamily Mortgage Loan Originations Increased in Q2 2024.
According to the Mortgage Bankers Association‘s Quarterly Survey of Commercial/Multifamily
Mortgage Bankers Originations, commercial and multifamily mortgage loan originations increased3% in the second quarter of 2024 compared to the same period a year earlier.
Originations also grew 27% from the first quarter of 2024.
MBA’s Head of Commercial Real Estate Research, Jamie Woodwell, noted that “Borrowing and
lending backed by commercial real estate remained subdued in the second quarter.” However, he
said “most capital sources remain ready, willing and able to lend on properties that can support a
loan.” Woodwell added that driven by growth in the single-asset single-borrower markets,
originations for commercial mortgage-backed securities (CMBS) grew significantly during the
quarter. With interest rates moderating and a large number of loans maturing, Woodwell expects to
see more borrower activity in the coming quarters.
The increase in Q2 2024 originations varied across different property types. There was a 172%
year-over-year jump in hotel property loans, a 77% increase for industrial properties, and a 50%
rise for healthcare properties. In contrast, retail property originations decreased 7%, multifamily
was down 14%, and office properties saw a 29% drop.
Among different investor types, CMBS originations surged 154% year-over-year. Loans from
investor-driven lenders rose 17%, and life insurance company loans increased 11%. However,
loans from depositories fell 26% and government-sponsored enterprise (GSE) loans decreased
20%.
Looking at quarter-over-quarter changes, Q2 2024 originations for healthcare properties jumped
178% compared to Q1. Hotel originations were up 84%, industrial increased 29%, and multifamily
grew 27%. Retail and office also saw increases of 18% and 4% respectively.
Across investor types, life insurance company loans rose 60% from Q1 to Q2 2024. Depository
loans were up 21%, CMBS increased 21%, and investor-driven lender originations grew 20%. GSE
loans saw a more modest 16% rise.
In summary, the commercial and multifamily mortgage market showed signs of increased activity
in the second quarter of 2024 compared to both the prior year and prior quarter. Growth was
particularly strong in hotel, industrial, and healthcare property types, as well as for CMBS. The
outlook remains positive, with expectations of more borrower demand in the coming quarters as
interest rates moderate and loan maturities rise.
