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WASHINGTON, DC-The Mortgage Bankers Association reports that commercial and multifamily loan originations increased 17.3% in Q2, compared to the same quarter last year. Compared to the first quarter in 2006, second quarter loan originations were up 23.3% and year to date originations are 24.3% higher than at the same time last year

.With a 177.4% increase, health care properties, followed by industrial space and hotels saw the biggest increase in originations in Q2, compared to the same quarter in 2005. Loans increased by 33.7% and 32.4% for industrial space and hotel properties, respectively. Office building loans rose by 12.7%; multifamily by 8.8%; and retail by 6.9% during the comparable year-ago period.

Doug Duncan, MBA chief economist and senior vice president of research and development, notes that the steady rise of short-term interest rates by the Federal Reserve was in part offset by falling long term rates. "Our forecast calls for some moderation in economic growth, with interest rates stable through the rest of the year. Continued low intermediate and long-term rates as well as ample supply of available capital provide a good backdrop for continued strength in commercial and multifamily market."