Commercial/Multifamily Mortgage Originations Index

Commercial and multifamily mortgage loan originations increased 24 percent in the third quarter compared to a year ago.
Source: Mortgage Bankers Association

2019 continues to be a robust year for commercial real estate.

According to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, commercial and multifamily mortgage loan originations increased 24 percent in the third quarter compared to a year ago, and rose 9 percent from this year’s second quarter.

Low interest rates are supporting strong levels of commercial and multifamily borrowing and lending. Consider this: through the third quarter, every major capital source is lending at a pace above last year’s level. Additionally, loans backed by multifamily and industrial properties, and made for life companies and Fannie Mae and Freddie Mac, are all running at a record pace.  

Can this strong trend continue? I believe the answer is yes. The low interest rate environment should continue to support property values and encourage borrowing into 2020.

Jamie Woodwell is the Mortgage Bankers Association’s vice president of commercial real estate research.