US Commercial and Multifamily Mortgage Loan Originations Fall 23% in 2024Q1 From 2024Q4

On Thursday, the Mortgage Bankers Association (MBA) released its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. In Q1, commercial and multifamily mortgage loan originations were basically unchanged year-over-year but were down 23% when compared to 2023Q4.

Originations in Q1 varied across the different property types, MBA said. There was a 31% year-over-year decrease in the dollar volume of loans for retail properties, a 22% decrease for health care properties, a 21% decrease for office properties, and a 7% decrease for multifamily properties. On the other hand, hotel property originations increased 8%, and there was a 63% increase for industrial properties.

Adding background and analysis to the report, MBA Head of Commercial Real Estate Research Jamie Woodwell said:

“Borrowing and lending backed by commercial real estate properties remained muted in the first quarter of 2024. 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.

With loan maturities and other triggers increasingly likely to prompt action, property owners, potential owners, lenders, and others are all working through the specifics of each individual property to identify the level of mortgage debt that property can support. New loan originations should follow as this continues.”