Commercial/Multifamily Borrowing Increased 52 Percent In The First Quarter Of 2026

Commercial and multifamily mortgage loan originations were 52 percent higher in the first quarter of 2026 compared to a year earlier, and decreased 30 percent from the fourth quarter of 2025, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

“Commercial and multifamily originations increased 52 percent on an annual basis in the first quarter of 2026, reflecting a meaningful rebound in lending activity,” said Reggie Booker, MBA’s Associate Vice President of Commercial Research. “The most notable increase was the 80 percent rise in depository lending, driven in part by the large volume of bank-held loans maturing this year and the need to refinance those positions. While overall activity declined from the fourth quarter of 2025, that slowdown is consistent with typical first-quarter seasonality and does not detract from the broader improvement in market conditions.”

Compared to a year earlier, a rise in originations for healthcare, retail, hotel, and industrial properties led to an overall increase in commercial/multifamily lending volumes. There was a 209 percent year-over-year increase in the dollar volume of loans for health care properties, an 148 percent increase for retail properties, an 85 percent increase for hotel properties, a 56 percent increase for industrial properties, and a 49 percent increase for multifamily properties. Office property loan originations decreased 2 percent compared to the fourth quarter of 2025.

Among investor types, the dollar volume of loans originated for investor-driven lenders increased by 133 percent year-over-year. There was an 80 percent increase in loans for depositories, a 38 percent increase in government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac), a 9 percent increase in life company loans, and a 14 percent decrease in commercial mortgage-backed securities (CMBS) loans.

FOURTH QUARTER ORIGINATIONS DOWN 30 PERCENT FROM THE FOURTH QUARTER OF 2025

On a quarterly basis, fourth-quarter originations for multifamily properties decreased 28 percent compared to the fourth quarter 2025. There was a 28 percent decrease in originations for office properties, a 28 percent decrease for industrial properties, and a 5 percent decrease for retail properties. Originations for hotel properties increased 3 percent and originations for health care properties increased 70 percent compared to the fourth quarter of 2025.

Among investor types, between the first quarter of 2026 and fourth quarter of 2025, the dollar volume of loans for depositories decreased 37 percent, loans for life insurance companies decreased 36 percent, originations for GSEs decreased 35 percent, loans for CMBS decreased 23 percent, and the dollar volume of loans for investor-driven lenders decreased 18 percent.