Commercial, Multifamily Loans Recover Some In Q4

Commercial and multifamily mortgage loan originations were 76 percent higher in the fourth quarter than the quarter before – but remained 18 percent lower than the same period in 2020, according to a report released Monday by the Mortgage Bankers Association.

For the year, preliminary MBA numbers show commercial and multifamily borrowing was 30 percent lower than in 2019.

The report found:

  • A 79 percent year-over-year decrease in the dollar volume of loans for hotel properties in the fourth quarter.
  • A 72 percent decrease for retail properties.
  • A 56 percent decrease for office properties.
  • A 12 percent decrease for health care properties.
  • Industrial property loan originations increased 15 percent.
  • Multifamily property lending rose 14 percent.   

“The last three months of 2020 were stronger than earlier quarters for borrowing backed by commercial and multifamily properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Commercial mortgage loan originations during last year’s fourth quarter were 18 percent lower than a year earlier, but up significantly from the very low third quarter.”