Finance

An update from the Mortgage Bankers Association and Harvard's Joint Center for Housing Studies on the striking post-recession changes in U.S. homeownership patterns.

The delinquency reading dropped in 10 of the 12 months of 2018. In total, the rate shed 178 basis points during 2018.

While the financial markets have been sending out alarm signals, the Federal Reserve is taking a wait-and-see-approach.

Defaults for commercial and multifamily borrowers remained low in the third quarter of 2018, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report.

S&P Global Market Intelligence reports positive one-year total returns across property sectors, with the notable exception of office and retail.

The multifamily mortgage market is large and diverse, with 2,554 lenders making 44,623 loans totaling a record $285 billion in 2017. But a small number of dedicated commercial real estate lenders are responsible for the overall dollar volume of loans.

Strong property fundamentals, low interest rates and ample financing options continue to support the ability of multifamily and commercial real estate investors to repay their mortgages.

Low long-term interest rates, growing property incomes and rising values continue to support new loan demand, with multifamily and industrial registering the strongest first-half 2018 activity.

Between 2016 and 2017, the dollar volume of loans reported intermediated for REITs, mortgage REITS and specialty finance companies; for credit companies; and for other “non-traditional” lenders grew by 56 percent.

During the first three months of 2018, commercial and multifamily mortgage debt outstanding increased more than during any other first quarter since before the Great Recession.

Record-setting growth across sectors characterized 2018's first quarter, reported Jamie Woodwell, vice president of commercial real estate research with the Mortgage Bankers Association.

MBA’s commercial/multifamily mortgage bankers origination index reported an 8 percent increase in the dollar volume of loans closed for Fannie Mae and Freddie Mac between the first quarter of 2017 and the first quarter of 2018.