The Mortgage Bankers Association has just reported another quarter of low commercial and multifamily loan originations – so low that it marked the slowest first quarter since 2014 – in what is historically the slowest time of the year.
In Q1 2023, loan originations plunged 42% lower than the previous quarter, and 56% lower than in the same period in 2022. The downward trend began in the third quarter of 2022.
"Uncertainty and volatility in regard to interest rates and property values, and supply and demand imbalances for some property types, has led to a logjam in commercial real estate sales and financing markets," said James Woodwell, the association's head of commercial real estate research. "As loans mature and adjustable-rate loans reset, we should start to get greater insights into where things stand."
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