After ascending to the highest level on record in 2015, apartment lending activity again established a new record last year.
The origination of new loans to finance residential properties that have at least five units amounted to $269.2 billion during all of 2016.
Last year’s originations turned out to be the biggest single year for
multifamily mortgage production ever.
The details were reported Thursday by the Mortgage Bankers Association, which said it based its findings on Home Mortgage Disclosure Act data.
“In 2016, strong property performance, rising property values and low mortgage rates all meant greater access to mortgage credit for apartment property owners,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in the report. “The $269 billion in lending that took place shows the breadth of the market — with loans ranging in size from tens of thousands of dollars to hundreds of millions, and the largest lender closing more than 7,500 loans while 61 percent of active lenders closed five or fewer loans.”
Multifamily lending was previously reported for 2015 by MBA at $249.8 billion — also a record at the time.
The 2016 total was generated
by 2,822 companies, fewer than 2,855 the preceding year.
Woodwell noted that market momentum is continuing into this year, “with strong demand from borrowers and a strong appetite to lend by lenders, especially of loans going to government-related entities.”