Commercial and multifamily mortgage loan originations were up 66% year over year and 48% quarter over quarter in the second quarter, according to the Mortgage Bankers Association (MBA). However, year-over-year multifamily originations decreased 35% and were down 41% from the first quarter.
“Commercial and multifamily borrowing gained significant momentum in the second quarter of 2025, with strong increases across most property types and capital sources,” said Reggie Booker, MBA’s associate vice president of commercial research. “While multifamily and hotel lending remain below last year’s levels, much of the strong annual growth reflects the exceptionally low levels of activity reported last year. Lending by depositories more than doubled, and originations by investor-driven lenders surged by over 90%, highlighting renewed interest from both traditional institutions and private capital.”
Year over year, increases in originations for office, health care, and industrial properties led to the overall increase in commercial lending volumes. The dollar volume of loans for office properties jumped 140%, while originations for health care and industrial properties increased 77% and 53%, respectively.
The dollar volume of loans originated for depositories increased by 108% year over year, followed by a 93% increase in loans for investor-driven lenders, a 72% increase in loans for life insurance companies, and a 59% increase for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Among the investor types, only commercial mortgage-backed securities (CMBS) loans saw a 10% decrease.
Quarter over quarter, originations for industrial properties increased 102% compared with the first quarter. Originations for health care and retail properties increased 90% and 58%, respectively, while loans for office properties decreased 18%.
Quarter over quarter, investor-driven lenders led the charge in the second quarter, with the dollar volume of loans increasing 107%. Loans for life insurance companies increased 71, while originations for GSEs and depositories increased 54% and 36%, respectively. On a quarterly basis, the dollar volume of loans decreased by 20% for CMBS.
