Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

Commercial Production Down by Over Half

Commercial Production Down by Over Half$181.4 billion commercial mortgage production in 2008

June 4, 2009

By staff

Commercial mortgage originations dropped by nearly two-thirds last year and might fall further.Volume, including multifamily activity, was $181.4 billion during 2008, the Mortgage Bankers Association reported today. Fundings sank from $507.7 billion previously reported for 2007.

Mortgage brokers were involved in $61.2 billion of last year’s activity.

Around $64.4 billion of 2008 volume was originated for commercial banks and thrifts, while life insurance companies funded $28.3 billion. Fannie Mae funded $22.4 billion, Freddie Mac acquired $17.7 billion and credit companies handled $11 billion. Around $4.0 billion in loans were originated as part of asset-backed securities.

Multifamily production was $64.6 billion, office financings were $31.5 billion and retail property lending was $22.7 billion. Industrial originations were $13.8 billion, hotel-motel lending was $10.8 billion and health care production was $6.0 billion.

“The continuing credit crunch, a relatively low volume of commercial mortgages maturing in the coming years and little incentive for property owners to sell their properties all continue to put downward pressure on origination volumes,” MBA commercial executive Jamie Woodwell said in the statement.

next story

back to current headlines

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...