Categorized | Commercial

United States Commercial Loan Originations Hit Highest Level in Years

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The number of commercial loans originated in the United States during the third quarter was the highest it has been in almost four years. Commercial loan originations are up almost one hundred percent from one year ago. The numbers are ten percent higher than the previous quarter as well.

The number of new commercial loans hasn’t been as high as its current level since the end of 2007. Although the total value of originations increased by more than three billion dollars since the last quarter, commercial property growth in general is expected to still be slow in all but the prime markets.

Commercial real estate, as a whole though, experienced a strong increase in prices for the fourth straight month. However, total sales volume took a significant hit in the third quarter.

As the residential real estate market continues to have its struggles, analysts have looked to the commercial real estate market to pick up the slack. Despite the massive increase in originations, overall commercial real estate growth has been less than stellar in comparison to the expectations for the market.

There is hope, however, that 2012 will present a different story. Analysts hope that the commercial market will experience a steadily increase in the next year, as investors see it as a more stable market than the residential real estate sector.

Commercial loan originations from Fannie Mae and Freddie Mac increase almost fifty percent last year. Commercial bank originations rose over four hundred percent. With such increases, growth in the commercial sector looks to be a sure thing for most investors.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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