US Commercial Mortgage Starts Increase

---

Commercial and multifamily mortgage originations in the U.S. were 29 percent higher during the third quarter compared to last year, driven by originations for health care properties, according to the Mortgage Bankers Association. But volumes barely changed compared to the previous quarter, the MBA reports. 

"Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter," Jamie Woodwell, MBA's vice president of Commercial Real Estate Research, said in the report.  "Lending by life insurance companies remained near last quarter's record pace, while lending for the GSEs dropped by more than a third."

The dollar volume of originations for health care properties in the third quarter jumped 124 percent for the year, according to the group's data. Office property originations increased 69 percent, followed by hotel (46 percent), retail (30 percent), industrial (8 percent) and multifamily properties (3 percent). 

Among investor types, from the second quarter to third quarter loans for commercial bank portfolios saw an increase in dollar volume of 32 percent and originations for life insurance companies decreased 6 percent.

Year to date, 2013 commercial and multifamily originations were 14 percent higher than last year. In year-to-date volumes, the leader for originations was hotel properties, with a 25 percent yearly increase in mortgage originations.

Yesterday's report from Freddie Mac showed a drop in U.S. mortgage rates.