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Thursday, 07 November 2019

Low Interest Rates Continued to Bolster Lending Activity in 3Q

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Commercial Real Estate Direct Staff Report

Continued super-low interest rates during the third quarter pushed commercial mortgage origination volumes higher by 24 percent when compared with the same period a year ago, according to the Mortgage Bankers Association.

Volumes were 9 percent higher than they were during the second quarter.

The Washington, D.C., trade group conducts a survey of its lender members every quarter to gauge overall origination activity and uses that to build an index that was set to 100 in 2001. It hit its cyclical high in the fourth quarter, reaching 342, up from last year's 300. In the third quarter, it was 316, up 24 percent from the 256 posted the same time a year ago and 9 percent from the 289 recorded in the second quarter.

Between July and September, the 10-year Treasury rate, against which most fixed-rate loans are benchmarked, had averaged 1.8 percent. That compares with 2.34 percent during the...

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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Mortgages/Financing (MOR), Research (RES)
  • Company: Mortgage Bankers Association of America
  • Private: Yes
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