CRE Mortgage Originations Remain Flat Year-Over-Year
Commercial and multifamily mortgage loan originations were essentially unchanged in the first quarter of 2024 compared to a year ago, and decreased 23% from Q4 2023, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. However, the volume by lender type varied substantially compared to Q1 2023.
“Borrowing and lending backed by commercial real estate properties remained muted in the first quarter of 2024,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Elevated interest rates and uncertainty about their direction have kept many current owners on the fence, with little commending a sale or refinance unless something forces the issue.”
Among lender types, the dollar volume of loans originated for banks decreased Y-O-Y by 41%. Loan volume from Fannie Mae and Freddie Mac was 17% lower, but life insurance company loans were up by 35%, investor-driven lender loans rose by 41% and CMBS origination was up by 93% from a year ago.
Originations in Q1 2024 also varied across the different property types. There was a 31% Y-O-Y decrease in the dollar volume of loans for retail properties, a 22% decrease for healthcare properties, a 21% decrease for office properties and a 7% decrease for multifamily properties. Hotel property originations increased 8% and industrial property originations rose by 63%.
