Commercial and multifamily mortgage originations totaled $34.1 billion in the third quarter, up 15.2% from the volume recorded a year earlier, according to a quarterly survey by the Mortgage Bankers Association.The volume was 2.3% higher than that of the second quarter. "Continued demand for commercial mortgages -- from both borrowers and lenders -- is setting up 2004 to break 2003's record origination levels," said MBA chief economist Doug Duncan. "And while modestly rising interest rates could take some wind out of the sails, stabilizing market conditions and low delinquency rates will likely keep capital flowing to commercial and multifamily properties." The MBA reported that purchases by commercial mortgage-backed security conduits accounted for $9.4 billion of loan originations in the third quarter, followed by commercial banks, $8.2 billion; life insurance companies, $7.4 billion; and Fannie Mae and Freddie Mac, $5.1 billion. The group can be found online at http://www.mortgagebankers.org.
