Breakdown by property type
The first-quarter results revealed a mixed picture across different property sectors. According to MBA’s report, loan volume decreased significantly for retail properties (31%) from the same period a year ago, healthcare properties (22%), and office properties (21%).
Multifamily properties saw a smaller decline of 7%. Meanwhile, hotel properties showed an 8% increase, and industrial properties experienced a striking 63% surge in lending activity.
Shifts in investor activity
Lending by traditional depositories (banks) decreased by a substantial 41% year-over-year. Loans from government-sponsored enterprises (Fannie Mae and Freddie Mac) experienced a 17% decline.
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However, life insurance companies saw a boost in lending activity at 35%, followed by a 41% increase for investor-driven lenders. Commercial mortgage-backed securities (CMBS) experienced the largest surge, with a 93% increase in loan volume.
