Commercial and Multifamily Borrowing Drops 25%
Commercial and multifamily mortgage loan originations declined 25% year over year in the fourth quarter, according to the Mortgage Bankers Association’s (MBA’s) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. However, originations increased 13% from the third quarter.
“Borrowing and lending backed by commercial real estate remained subdued to close out 2023,” said Jamie Woodwell, MBA’s head of commercial real estate research. “The fourth quarter saw a small pickup from the previous quarter, as is usually the case, but was still down about 25% from 2022’s already suppressed fourth quarter pace. For the year, mortgage originations were about 50% below 2022 levels, with every major property type and capital source experiencing a decline.”
The MBA released its latest data this week at its annual Commercial/Multifamily Finance Convention and Expo.