Wells Fargo, CBRE Capital Markets, JP Morgan Chase top US multifamily lenders in 2018
According to the Mortgage Bankers Association's annual report of the U.S. multifamily lending market, favorable market conditions helped spur a 19 percent increase in multifamily lending in 2018 to a new high in dollar volume.
Last year, 2,669 different multifamily lenders provided a record $339.2 billion in new mortgages for apartment buildings with five or more units. Forty-five percent of the active lenders made five or fewer multifamily loans over the course of the year.
"Borrowing and lending backed by multifamily rental properties set a new record in 2018, driven by strong property fundamentals, rising property values, low interest rates, and strong demand from both borrowers and lenders," said Jamie Woodwell, MBA's Vice President of Commercial Research and Economics. "We've seen these trends continue throughout 2019 and expect multifamily borrowing and lending will rise again both this year and next."
MBA's annual multifamily lending report is based on its surveys of multifamily lenders, as well as the Home Mortgage Disclosure Act (HMDA) data, which covers multifamily loans made by many smaller lenders, particularly commercial banks.
The $339.2 billion in originated multifamily mortgages went to a variety of investors. By dollar volume, the greatest share went to the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac (42 percent).
The top five multifamily lenders in 2018 by dollar volume were Wells Fargo, CBRE Capital Markets, Inc., JP Morgan Chase & Company, Berkadia, and Walker & Dunlop.
The 30-year fixed-rate mortgage in the U.S. averaged 3.64 percent. September 2019 has been the most volatile month since March, in terms of the 30-year fixed-rate mortgage, averaging a weekly movement of 11 basis points.
Sales of newly built, single-family homes increased 7.1 percent to a seasonally adjusted annual rate of 713,000 units in August 2019 off a revised upward reading in July 2019. On a year-to-date basis, new home sales for 2019 are 6.4 percent higher than the same period in 2018.
According to a new report from CBRE, the flexible office space footprint in Manhattan has tripled to 15 million square feet over the last five years as providers' offerings have evolved, new players entered the market and new flexible space models have arisen.
According to the U.S. Housing and Urban Development and Commerce Department, single-family gains helped offset a drop in multifamily production as total housing starts edged 0.9 percent lower in June 2019 to a seasonally adjusted annual rate of 1.25 million units.
Join 34,000+ real estate professionals worldwide who receive our free weekly newsletter