MBA Report: Commercial Mortgage Industry Still Going Strong

Commercial real estate continues a strong performance. The Mortgage Bankers Association just released the Commercial/Multifamily DataBook for the second quarter of 2015, summarizing its latest research into trends and conditions in the commercial mortgage industry.

As expected, the publication reveals the industry enjoyed continued economic growth throughout the second quarter of the year.  The seasonally adjusted annual growth rate for the US economy overall was marked at 3.9 percent, with job growth also strong at a seasonally adjusted 230,000 jobs per month. Specifically, MBA reported that mortgage originations increased by 113% in the government-sponsored (Freddie Mac/Fannie Mae) sector while CMBS loan originations increased by 64%.  The second quarter of 2015 also marked the first time multifamily mortgage debt has surpassed $1trillion, growing at almost 10% a year. According to the Federal Reserve Board, Credit quality was unchanged or improved in key districts, and delinquencies remain. Though low interest rates and generous terms for commercial real estate mortgages and construction loans were reported in Boston, credit standards were largely unchanged in other Districts.