Multifamily/Commercial Borrowing Declines -48% in Second Quarter of 2020

According to the Mortgage Bankers Association year-over-year commercial and multifamily mortgage loan originations were -48% lower in the second quarter of 2020. A decline of -31% from the first quarter of 2020. In prepared remarks about the decline Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research said, “Commercial real estate borrowing and lending slowed dramatically in the second quarter, as uncertainty around the COVID-19 pandemic caused both borrowers and lenders to focus more of their attention on their existing books of business instead of new opportunities. The originations picture shows a marked divide between properties that were the most dramatically and immediately hit by the pandemic – lodging and retail – and those that have fared better – multifamily and industrial. Refinancing in government-backed loans has shown the greatest resilience.”

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.