Commercial and multifamily mortgage loan originations were 52% higher year over year in the first quarter, but down 30% from the fourth quarter, according to the Mortgage Bankers Association (MBA).
MBA associate vice president of commercial research Reggie Booker noted the year-over-year originations reflect a meaningful rebound in lending activity.
“The most notable increase was the 80% rise in depository lending, driven in part by the large volume of bank-held loans maturing this year and the need to refinance those positions,” he said. “While overall activity declined from the fourth quarter of 2025, that slowdown is consistent with typical first quarter seasonality and does not detract from the broader improvement in market conditions.
According to the MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, a rise in originations for healthcare, retail, hotel, and industrial properties led to an overall increase in lending volumes year over year. While loans for multifamily properties increased 49%, loans for healthcare and retail properties saw increases of 209% and 148%, respectively. Originations for hotel properties increased 85% year over year, while loans for industrial properties saw a 56% jump. Office property loan originations decreased 2%.
Among investor types year over year, the dollar volume of loans originated for investor-driven lenders rose by 133% in the first quarter. In addition, there was an 80% jump in loans for depositories, a 38% increase for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, and a 9% increase in life company loans. Commercial mortgage-backed securities (CMBS) loans saw a 14% year-over-year decrease.
On a quarterly basis, originations for multifamily properties decreased 28% in the first quarter. Originations for office and industrial properties each dropped 28%, while retail properties saw a 5% decrease. Loans for healthcare properties increased 70% compared with the fourth quarter, while hotel property originations inched up 3%.
The primary investor types saw decreases between the first quarter and fourth quarter, with the dollar volume of loans declining for depositories 37%; insurance companies, 36%; GSEs, 35%; CMBS, 23%; and investor-driven lenders, 18%.