MBA Forecasts Growth in Commercial/Multifamily Real Estate Finance in 2017
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SAN DIEGO, CA (February 20, 2017) - The Mortgage Bankers Association (MBA) projects commercial and multifamily mortgage originations will grow to $515 billion in 2017, an increase of 3 percent from the 2016 estimated volumes of $502 billion. Mortgage banker originations of multifamily mortgages, specifically, are forecast at $219 billion in 2017, with total multifamily lending at $267 billion.
"Nationally, commercial real estate fundamentals and prices remain strong," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "That overall strength is expected to continue to support active sales and mortgage markets. Rising interest rates are likely to take a bit of wind out of the market, but even so, modest increases in originations should bring 2017 to record levels of borrowing and lending for commercial, and particularly multifamily, properties."
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