Quarterly commercial mortgage production moved up from the prior three-month period, and government-sponsored enterprise loans led the increase.
An estimated
$116 billion in U.S. commercial real estate loans were originated during the second quarter of this year.
Activity
picked up compared to the previous quarter, with originations increasing 16 percent from an estimated $100 billion.
Commercial mortgage production climbed 29 percent from the second-quarter 2014, when an estimated $90 billion was closed.
The estimated volume was based on
an analysis of the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, which was released Tuesday, and 2014 origination data previously reported by the trade group.
“Driven by increasing property values, improving property fundamentals and still low interest rates, commercial and multifamily lending and borrowing continued its strong pace in the second quarter,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in an accompanying announcement. “The rate of year-over-year growth slowed from the first quarter, but year-to-date lending is up for every major lender group.”
From Jan. 1 through June 30 of this year, an estimated
$216 billion in CRE loans were funded.
The biggest quarter-over-quarter gain was with CRE loans originated for Fannie Mae and Freddie Mac, which soared 99 percent from the first quarter.
“Mortgage bankers’ originations for Fannie Mae and Freddie Mac are near record quarterly levels,” Woodwell stated.
Compared to a year earlier, however, GSE commercial mortgage production fell 13 percent.
A 45 percent increase from the first quarter was recorded for CRE loans originated for commercial banks. This category has soared 64 percent from the second-quarter 2014 — more than any other category.
CRE loan production for life insurance companies
climbed 10 percent between the first and second quarters of this year and have risen 14 percent on a year-over-year basis.
The only category to see a decline from the first quarter was CMBS/Conduits, which fell 10 percent. Originations funded by CMBS/Conduits have slowed 17 percent from the same quarter 2014.
