Multifamily Originations Jumped 72% in Q1 2022

The dollar volume of loans for depositories increased by 194 percent year-over-year, according to MBA.

Source: MBA

The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 carried into the first quarter of this year.

Mortgage loan originations increased 72 percent in the first quarter of 2022 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. In line with seasonality trends, originations during the first three months of 2022 year were 39 percent lower than during the fourth quarter of 2021.

By property type, multifamily increased by 57 percent. Among investor types, the dollar volume of loans originated for depositories increased by 194 percent year-over-year. Life insurance company portfolios increased 81 percent, investor-driven lenders increased 77 percent, CMBS increased 56 percent, and GSEs (Fannie Mae and Freddie Mac) increased 1 percent.

 The continued growth in lending activity is the result of the ongoing strong demand for certain property types like industrial and multifamily, as well as renewed interest in other property types that saw more dramatic declines during the early stages of the pandemic.

One important thing to highlight for upcoming quarters? Higher interest rates. It’s likely that the rise in interest rates will take some wind out of the sails of borrowing, but strong market fundamentals, property values, and investor interest should continue to support the market.

Jamie Woodwell is the Mortgage Bankers Association’s vice president of commercial real estate research.

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