August 12, 2020
Commercial and multifamily mortgage loan originations were 48% lower in the second quarter compared to a year ago, and declined 31% from Q1, according to the Mortgage Bankers Association’s (MBA) quarterly survey.
All property sectors withstood year-over-year declines, but some were far steeper than others. Q2 saw originations drop 91% Y-O-Y for hotels, 74% for retail, 71% for office, 44% for industrial, 40% for healthcare and 24% for multifamily.
“Commercial real estate borrowing and lending slowed dramatically in the second quarter, as uncertainty around the COVID-19 pandemic caused both borrowers and lenders to focus more of their attention on their existing books of business instead of new opportunities,” said Jamie Woodwell, MBA’s VP of commercial real estate research.
He noted that while sectors affected most “dramatically and immediately” by the pandemic saw the sharpest drop-offs, “refinancing in government-backed loans has shown the greatest resilience.”
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