Commercial mortgage lending down 54%

Commercial and multifamily mortgage lending in the U.S. fell 12 percent from the second quarter to the third quarter and is down 54 percent from year ago levels, according to the Mortgage Bankers Association. The drop includes a year over year decrease in lending for all types of commercial properties. Loans for retail properties are down 62 percent. Loans for office properties are down 56 percent, MBA says. Apartment lending is down 40 percent. “Tight credit conditions coupled with scant demand for new loans meant that commercial and multifamily mortgage originations remained low for the third quarter,” said MBA vice president of commercial real estate research Jamie Woodwell. “A pullback by Fannie Mae and Freddie Mac in their multifamily activity outweighed increases in commercial and multifamily lending by insurance companies and commercial banks.” In addition, company downsizing has dampened demand for new office space across the country.

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