Commercial Mortgage Originations Suffer First YoY Decline Since 2007 (C&I Lending Growth Dropping)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Share!Tweet about this on TwitterShare on FacebookShare on LinkedInEmail this to someonePrint this page

Yes, commercial mortgage originations suffered the first YoY decline since 2007.

According to the Mortgage Bankers Association 4Q 2016 commercial real estate loan originations survey, mortgage originations related to discretionary segments of the economy are in complete free fall with retail and hotel volumes down 19% and 39%, respectively4Q16CMFOriginationsSurvey

A decrease in originations for hotel, health care, and retail properties led the overall decline in commercial/multifamily lending volumes when compared to the fourth quarter of 2015. The fourth quarter saw a 39 percent year-over-year decrease in the dollar volume of loans for hotel properties, a 24 percent decrease for health care properties, a 19 percent decrease for retail properties, a 4 percent decrease for industrial properties, a one percent decrease in multifamily property loans, and a 6 percent increase in office property loans.

At least commercial and industrial lending at commercial banks has positive YoY growth rate (although plunging like a paralyzed falcon).

Of course, the retail store closings are problematic.

Say, I wonder if Federal Reserve Chair Janet Yellen bought her scarf on line or at a brick and mortar retail store?

Wall Street Examiner Disclaimer:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am also a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases promotional consideration is paid on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply