Rising originations and dollar volumes
Mortgage Bankers Association’s 2010 commercial and multifamily is out, reporting that mortgage origination volumes jumped 44% in 2010 over 2009, totaling $118.8 billion of closed loans in the sector.
While this is good news for the commercial sector, 2009 wasn’t exactly a stellar year, but improvement is welcome news nonetheless. The increase in activities was led by office properties who accounted for the largest jump in originations, followed by hotel properties and retail.
Although office, hotel and retail properties had the largest jump in originations, multifamily properties accounted for 41% of the total dollar volume at $48.9 billion, with nearly $45 billion of that in the form of first liens.
“Low interest rates, coupled with improving economic fundamentals, have the potential to draw out even more borrowers in 2011,” says Jamie Woodwell, the MBA’s VP of commercial real estate research.
The MBA is selling the full report here for $100.