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Second quarter commercial and multifamily mortgage loan originations sank by 53% from one year ago, according to new data from the Mortgage Bankers Association (MBA). However, the originations level was up 23% from the previous quarter.

Decreases in originations for all major property types led to the year-over-year decline: a 74% year-over-year decrease in the dollar volume of loans for health care properties, a 66% tumble for office properties, a 55% slide decrease for retail properties, a 55% decline for industrial properties, a 48% slip for multifamily loans, and a 32% stumble for hotel properties.

Among investor types, the dollar volume of loans originated for depositories decreased by 69% year-over-year. All categories recorded year-over-year downturns: investor-driven lenders (-60%), life insurance company loans (-49%), commercial mortgage-backed securities (-23%), and the government-sponsored enterprises (-11%).

Jamie Woodwell, MBA’s head of commercial real estate research, observed, “Higher interest rates, uncertainty about property values, and questions about some property fundamentals are all contributing to the slowdown. We expect the logjam to begin to break in coming quarters, but the path forward will depend on where interest rates and other aspects of the economy go from here.”