MBA Releases Updated Commercial/Multifamily Real Estate Finance Forecast

WASHINGTON, D.C. – July 8, 2016 – (RealEstateRama) — The Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will total $500 billion in 2016, roughly flat from the $504 billion originated in 2015 and slightly less than the record of $508 billion originated in 2007.  Mortgage banker originations of multifamily mortgages are forecast at $210 billion in 2016, with total multifamily lending at $273 billion.

“The year has started off with more than its fair share of twists and turns,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “When all is said and done, commercial and multifamily real estate finance markets are likely to end 2016 with another strong year of borrowing and lending.  On the demand side, strong property fundamentals and prices should continue to support an active sales market, which will drive mortgage demand.”

“On the supply side, solid originations for life companies, Fannie Mae, Freddie Mac and bank portfolios are expected to make-up for some – but not all – of the slowdown in the CMBS market this year.  The net result will likely be 2016 originations coming in just a shade lower than 2015 levels.  Global economic uncertainty and a range of regulations that could affect the availability of CRE financing remain wildcards,” Woodwell continued.

Commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2016, ending the year at $2.9 trillion, more than three percent higher than at the end of 2015.

MBA’s commercial/multifamily members can download a copy of MBA’s Commercial/Multifamily Real Estate Finance Forecast atwww.mba.org/research.

Click here to watch Jamie Woodwell discussing the forecast on MBANow. 

CONTACT
Ali Ahmad

(202) 557- 2727

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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