Commercial mortgage originations increased 5% in the third quarter compared with the same period last year, driven by a huge increase in government-sponsored enterprise volume, according to the Mortgage Bankers Association.
"Rising property values, robust property fundamentals, low interest rates and a strong transaction market continue to drive potentially record-setting paces in commercial and multifamily mortgage originations. Through the first nine months of the year, borrowing and lending backed by commercial real estate is
The dollar volume of loans originated for Fannie Mae and Freddie Mac increased by 82% year over year. However, there was a 3% decrease for life insurance company loans, a 4% decrease in loans originated for commercial mortgage-backed securities and a 9%
But "after a slow start to the year, the commercial mortgage-backed securities market also saw a pick-up in the third quarter," said Woodwell, pointing to a 96% increase in volume for this loan type compared with the second quarter. Fannie Mae and Freddie Mac commercial loan originations increased by 35% over the second quarter.
Total volume was up 7% from the second quarter, with bank originations down 25% and life insurer originations down 4%.
