Quarterly commercial real estate loan originations moved higher, and it was lending for commercial mortgage-backed securities that led the gain.
Commercial mortgage originations during the period beginning on July 1, 2016, and concluding on
Sept. 30 rose 7 percent from the second quarter.
The
increase was less dramatic when compared to the same three-month period of last year, with a year-over year increase of just 5 percent.
The findings were derived from the Mortgage Bankers Association’s
Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations | Q3 2016.
“Rising property values, robust property fundamentals, low interest rates and a strong transaction market continue to drive potentially record setting paces in commercial and multifamily mortgage originations,” MBA Vice President of Commercial Real Estate Research said in the report.
Based on an analysis of
previously reported origination data from MBA for 2015 and the Commercial/Multifamily Mortgage Bankers Originations Index level in the current report, Mortgage Daily estimates that third-quarter 2016 CRE production was $127 billion, up from $118 billion three months earlier and $121 billion a year earlier.
Year-to-date CRE loan originations total an estimated $347 billion.
Compared to the second quarter of this year,
originations for CMBS/Conduits soared 96 percent — more than any other lender type. But the category was down 4 percent from the third quarter of last year.
Originations of Fannie Mae/Freddie Mac multifamily loans leapt 35 percent from the prior quarter. The government-sponsored enterprise category has soared from the year-prior period by 82 percent — the largest year-over-year gain.
A 4 percent decline between the second and third quarters of this year was recorded for life insurance companies, while a 3 percent dip occurred compared to the same three-month period last year.
The worst-performing category was CRE loans originated for commercial banks, with a 25 percent quarter-over-quarter decline and a 9 percent year-over-year drop.
The origination of loans secured by industrial properties was up by a fifth from the second quarter and nearly a third stronger than the third-quarter 2015 — the best improvement of any property type.
A 19 percent increase from the second quarter hit health care property loan production, though the category has plummeted 59 percent from one year previous.
Multifamily originations were up 18 percent from the previous quarter and more than a quarter higher than the year-previous period.
While office loan production ascended 18 percent from the second quarter, the category slipped 5 percent from the third-quarter of last year.
The production of retail property loans rose 8 percent from a quarter earlier but fell 23 percent from four quarters earlier.
The only category to lose ground was hotel loans, falling 44 percent on a quarter-over-quarter basis. Hotel mortgage production had a 30 percent year-over-year tumble.
