CRE Loan Originations Down 56% Year-Over-Year in Q1
Commercial and multifamily mortgage loan originations were 56% lower in the first quarter of 2023 than a year ago, and 42% lower than Q4 2022, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. By property type, industrial and healthcare properties saw the biggest year-over-year declines.
“While the first quarter is typically the quietest quarter of the year, borrowing and lending backed by commercial and multifamily properties declined in the first quarter to the slowest pace since the first quarter of 2014,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Uncertainty and volatility in regard to interest rates and property values, and supply and demand imbalances for some property types, has led to a logjam in commercial real estate sales and financing markets.”
He continued, “As loans mature and adjustable-rate loans reset, we should start to get greater insights into where things stand.”
- ◦Financing
