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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 54 June 2024 J O U R N A L HAVE COMMERCIAL AND MULTIFAMILY LOAN ORIGINATIONS PLATEAUED? C ommercial and multifamily mortgage loan originations were essentially unchanged in Q1 of 2024 compared to a year ago, and de- creased 23% from Q4 of 2023, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/ Multifamily Mortgage Bankers Origina- tions. "Borrowing and lending backed by commercial real estate properties remained muted in the first quarter of 2024," said Jamie Woodwell, MBA's Head of Commercial Real Estate Research. "Elevated interest rates and uncertainty about their direction have kept many current owners on the fence, with little commending a sale or refinance unless something forces the issue." Woodwell continued, "With loan maturities and other triggers increasingly likely to prompt action, property owners, potential owners, lenders, and others are all working through the specifics of each individual property to identify the level of mortgage debt that property can support. New loan originations should follow as this continues." Mortgage Originations Remain Unchanged from Q1 of 2024 Originations in Q1 of 2024 varied across the different property types. There was a 31% year-over-year decrease in the dollar volume of loans for retail properties, a 22% decrease for healthcare properties, a 21% decrease for office prop- erties, and a 7% decrease for multifamily properties. Hotel property originations Lending/Originations increased 8% and there was a 63% in- crease for industrial properties. Among investor groups, the dollar volume of loans originated for deposito- ries fell 41% year over year. Loans from government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac fell by 17%, while loans from life insurance companies increased by 35%, investor-driv- en lender loans increased by 41%, and commercial mortgage-backed securities (CMBS) loans increased by 93%. Q1 Originations Down From Q4 of 2023 In Q1 2024, originations for healthcare properties fell 56% from Q4 2023. Origina- tions for retail properties declined by 49%, hotel properties by 37%, multifamily prop- erties by 29%, and office properties by 3%. The dollar volume of loans for industrial assets increased by 12%. Between Q4 of 2023 and Q1 of 2024, the dollar volume of loans for life insurance firms declined 37%, deposits decreased 36%, GSE originations de- creased 30%, and investor-driven lenders decreased 18%. The monetary amount of CMBS loans has surged by 57%. HOW NEW HOME PURCHASE ACTIVITY IS TRENDING A ccording to the Mortgage Bank- ers Association's (MBA) Builder Application Survey (BAS) data for April 2024, mortgage applications for new home purchases jumped 22.1% over the previous year. Compared to March 2024, applications increased by 2%. "New home purchase activity increased at a healthy pace in April 2024 after a slight pause in March. Applications to purchase newly constructed homes increased 22% over the year and have now shown annual gains for 15 consecutive months," said Joel Kan, MBA's VP and Deputy Chief Economist. "There contin- ues to be healthy demand for new homes, given greater availability and other ben-