Chart of the week

Commercial mortgage originations reach a multiyear high

This week’s chart focuses on why the commercial mortgage market’s strong health is expected to last throughout 2019.

March 15, 2019 | 1 minute read
Commercial/Multifamily Mortgage Bankers Origination Index
  • The Commercial/Multifamily Mortgage Bankers Origination Index jumped more than 30% in Q4 from the prior quarter and reached its highest level in more than a decade.1 The index was led by strong origination activity in the healthcare, multifamily and industrial sectors.1
  • Looking ahead, the Mortgage Bankers Association projects that the healthy origination activity of 2018 should continue into this year, with commercial and multifamily mortgage originations set to match their 2017 record high of $530 billion.1
  • Institutional investor interest in real estate remains high. According to the 2019 Preqin Global Real Estate Report, 2018’s capital raise of $26 billion into real estate debt strategies marked the fifth time in the past six years in which capital raised for these strategies exceeded $20 billion.2
  • Early in 2019, YTD flows into real estate mutual funds and exchange-traded funds (ETFs) have topped $400 million, reversing last year’s significant outflow.3
  • Against the backdrop of the Fed’s notably dovish shift this year and with global bond yields continuing to trade near historic lows, it appears that many investors are turning to commercial real estate as a source of income and diversification in a portfolio.

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