Commercial/Multifamily Mortgage Bankers Originations to Grow by 4 Percent in 2017
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WASHINGTON, D.C. (November 4, 2016) - The Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will grow to $537 billion in 2017, an increase of 4 percent from expected 2016 volumes of $515 billion. Mortgage banker originations of multifamily mortgages are forecast at $224 billion in 2017, with total multifamily lending at $272 billion.
"Commercial real estate markets are carrying a great deal of momentum as they close out 2016," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Strong property fundamentals, increasing property values and sturdy sales activity - particularly among multifamily properties - are driving borrowing and lending to record levels. While next year could bring a variety of different market conditions, we anticipate a growing economy, coupled with only gradual increases in interest rates, will continue to support strong commercial property, and property finance, markets."
Commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2017, ending the year above $3 trillion, almost four percent higher than at the end of 2016.
MBA's commercial/multifamily members can download a copy of MBA's Commercial/Multifamily Real Estate Finance Forecast at www.mba.org/crefresearch.