During last year’s fourth quarter, commercial and multifamily loan originations increased by 11% from the same time a year before, a new report by the Mortgage Bankers Association says.
The report said that commercial and multifamily originations rose 27% between the third and fourth quarters of 2014, and originations were 7% higher for all of 2014 than they were in 2013.
“Commercial and multifamily mortgage markets ended the year strong,” MBA vice president of commercial real estate research Jamie Woodwell said in a press release.
“The fourth quarter set record quarterly origination volumes for life insurance companies, for Fannie Mae and Freddie Mac and for multifamily lending. With low interest rates, rising property values and improving property fundamentals and in spite of a significant drop in the volume of loans maturing during the year the preliminary numbers show every major investor group increased commercial and multifamily lending in 2014.”
The dollar amount of loans originated for Fannie Mae and Freddie Mac also increased in year-over-year comparison, rising 119% from the previous fourth quarter’s value. However, loans originated for commercial bank portfolios decreased by 7% over the year.