Q4 Survey of Commercial/Multifamily Mortgage Originations Paints Gloomy Picture for Sector

The Mortgage Bankers Association (MBA) released today (2-13-23) its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The survey reports that commercial and multifamily mortgage originations were 54% lower in 2022Q4 compared to a year ago and were 23% lower from 2021Q3.

The MBA notes that the decreases were widespread throughout the sector, with declines in originations for industrial, office, multifamily, and retail properties leading to an overall drop in commercial/multifamily lending volumes when compared to 2021Q4. There was a 69% year-over-year decline in the dollar volume of loans for industrial properties, a 56% drop in office properties, a 52% decrease in multifamily properties, a 46% drop in hotel properties, and a 44% decline in retail properties. Only health care property load originations increased, growing 4% when compared to 2021Q4.

Adding additional background and analysis to the quarterly survey’s release, MBA’s Head of Commercial Real Estate Research Jamie Woodwell said:

“Borrowing and lending backed by commercial and multifamily properties slipped further to close out 2022. The last quarter of the year typically see the highest volumes, but chill caused by rising interest rates, questions about property valuations and increased economic uncertainty made the fourth quarter of 2022 the weakest of the year.”