Commercial And Multifamily Mortgage Loan Originations Down Double Digits Annually

Commercial and multifamily mortgage loan originations were 25 percent lower in the fourth quarter of 2023 compared to a year earlier, and increased 13 percent from the third quarter of 2023, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Specifically, loans for office buildings fell 68 percent year-over-year and 32 percent from the previous quarter. On a quarterly basis, loan originations were up 13 percent for multifamily properties, and 131 percent for hotel properties.

“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 percent from 2022’s already suppressed fourth-quarter pace. For the year, mortgage originations were about 50 percent below 2022 levels, with every major property type and capital source experiencing a decline.”