Commercial and multifamily mortgage loan originations fell in the third quarter amid tight credit conditions and low demand, according to a Mortgage Bankers Association survey released Thursday.
The loans were down 54% from the year earlier and 12% from the second quarter.
A pullback in multifamily activity by Fannie Mae and Freddie Mac outweighed growth in commercial and multifamily lending by life insurers and commercial banks, according to Jamie Woodwell, the association's vice president of commercial real estate research.
Every investor group and property type saw year-over-year declines in origination volume, the MBA said. Loans for retail properties slid 62%, the steepest decline amid the groups tracked. Hotel and multifamily properties fell 46% and 40%, respectively.
Still, a few mortgage origination categories improved quarter-to-quarter, including office and industrial properties. Hotel, health-care, multifamily and retail properties all posted quarter-to-quarter declines.
