Third Quarter Commercial Mortgage Borrowing Down 13% – MortgageOrb

Commercial and multifamily mortgage originations in the third quarter of 2022 were down 13% compared to the same period last year, according to the company. Mortgage Bankers AssociationThe (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Banker Originations.

Jamie Woodwell, MBA’s Director of Commercial Real Estate Research, said: “Rising yields across investment options, including 10-year Treasury yields that more than doubled in the first nine months of the year, have transformed real estate financing and valuations. It will take time to fully absorb these changes Volatility is equally influential making transaction sizing very difficult The result has been many quarters of subdued borrowing and lending activity It was the first of

“Different sources of funding are feeling the slowdown in different ways. Q3 originations in the CMBS market were down about 75% year-over-year, while originations by banks and other depository institutions were down 25%. increased,” continues Woodwell. “A significant drop in trading activity could affect all funding sources, but probably not evenly.”

Overall commercial/multifamily lending volume declined, with lower lending volumes for offices, multifamily and retail compared to the previous year. By property type, offices decreased by 44%, multifamily by 16%, retail by 6%, and industrial by 4%. Loans backed by hotel assets increased him by 24%, while healthcare increased by 61%.

By investor type, the strong dollar for loans originated in commercial mortgage-backed securities (CMBS) fell 71% year-on-year, life insurance portfolios fell 42%, and government-sponsored enterprise (GSE – Fannie Mae and Freddie Mac) declined. Lenders down 15% and investor-led lenders down 8%. Depository originations increased 25%.

On a quarterly basis, office property originations fell 31% in Q3 compared to Q2 2022. Commercial composition was down 27%, healthcare facilities were down 21% and multi-family homes were down 12%. Industrial real estate decreased 6%. Hotel originations increased 45%.

By investor type, dollar-denominated loans to life insurance companies fell 37%, commercial mortgage-backed securities (CMBS) fell 35%, and loans to investor-led lenders fell 22%. , depository loans were down 7%. Government backed company (GSE – Fannie Mae and Freddie Mac) originations increased 17%.

Read full report here.

image: Etienne Beauregard Riverain upon unsplash

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