MBA’s Q2 2012 Mortgage Lending Report — The Best Quarter Since 2008

The Mortgage Bankers Association each quarter publishes a phenomenal report delineating lending statistics and an array of related data. A summary article of their findings can be viewed at the Mortgage Bankers website.

Included in their findings:

  • Commercial lending (including multifamily) was up 25 percent year-over-year in the second quarter and up 39 percent sequentially from Q1 2012
  • Office rents are up 2 percent while vacancy levels declined 3/10ths of 1 percent
  • Retail rents remained flat despite a 2/10ths of 1 percent decline in vacancy rates
  • Apartment vacancy rates dropped from 5.9 percent in Q2 2011 to 4.7 percent for the same period in 2012 with rents correspondingly up 3 percent
  • Commercial real estate sales in Q2 2012 were up 13 percent sequentially from Q1 but were off 18 percent from a year ago Q2
  • Apartment sales, driven by rising rents a growing rental segment with declining homeownership rates, were up 23 percent from Q1, while office properties rose 7 percent in the same period and industrial sales dropped 26 percent
  • Capitalization rates fell slightly for offices (down from 7.2 percent to 7.1 percent), retail (down from 7.3 to 7.2 percent) and industrial (down from 7.8 to 7.7 percent) while apartments remained flat at 6.2 percent

Q2 2012 remained the best quarter in lending volumes since 2008 as shown in the graph.

 

 

 

 

 

 

 

 

 

 

 

To obtain a copy of the MBA’s data-rich the report, click here.

Liquidity indeed is improving in the commercial sector—and that is good news.

Ted

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