New Q4 2020 data from Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations affirms the movement we here at Juniper Capital have been observing over the last few months: New loan inquires are picking up. In its latest report, commercial mortgage originations, while still down year over year, were up 76 percent over the third quarter of 2020, evidencing a rebound in our space.
Commercial and multifamily mortgage loan originations were 18 percent lower in the fourth quarter of 2020 compared to a year ago, but increased 76 percent from the third quarter of 2020, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
Overall commercial and multifamily mortgage originations volumes show borrowing and lending in 2020 was 30 percent lower than in 2019, but that should come as no surprise given the fallout from COVID-19. What’s compelling is that the last three months of 2020 were stronger than earlier quarters for borrowing backed by commercial and multifamily properties.
Looking more deeply at the different commercial categories, borrowing and lending were weaker in the hotel and retail sector, but multifamily lending led to the strongest commercial mortgage activity in Q3 2020.
Comparing third to fourth-quarter originations in 2020, the report states hotel properties jumped 411 percent compared to the third quarter 2020. There was a 136 percent increase in originations for industrial properties, a 111 percent increase for retail properties, and a 77 percent increase for multifamily properties. Originations for health care properties increased 77 percent, and originations for office properties increased 26 percent.
In late March, MBA will release its Annual Origination Summation report for 2020 with final origination figures for the year, and we’ll be closely watching. Click here to view the full Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations report.
No matter which way the general commercial lending climate swings, if you’re seeking quality real estate investments throughout the Pacific Northwest, we’re here to help. Juniper Capital provides private real estate financing, including hard money loans for commercial, construction, multi-family residential opportunities and more. If you would like more information on this topic, call us today.