Commercial and multifamily mortgage loan originations during the second quarter were up by 48% from the first quarter and up 66% from one year earlier, according to data from the Mortgage Bankers Association (MBA).
On a year-over-year measurement, there was a 140% spike in the dollar volume of loans for office properties, a 77% increase for health care properties, a 53% rise for industrial properties, and a 30% upswing for retail properties. On the flip side, originations for multifamily properties decreased 35% and hotel property loan originations declined by 30%.
Among investor types, the dollar volume of loans originated for depositories increased by 108% year-over-year. There was also a 93% increase in loans for investor-driven lenders, a 72% rise in loans for life insurance companies, and a 59% upswing for government-sponsored enterprises loans – as well as a 10% decrease in commercial mortgage-backed securities loans.
“Commercial and multifamily borrowing gained significant momentum in the second quarter of 2025, with strong increases across most property types and capital sources,” said Reggie Booker, MBA’s associate vice president of commercial research. “While multifamily and hotel lending remain below last year’s levels, much of the strong annual growth reflects the exceptionally low levels of activity reported last year. Lending by depositories more than doubled, and originations by investor-driven lenders surged by over 90%, highlighting renewed interest from both traditional institutions and private capital.”
