MBA Forecasts Commercial/Multifamily Originations Flat in 2018
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WASHINGTON D.C. (October 26, 2017) - The Mortgage Bankers Association (MBA) projects commercial and multifamily mortgage originations will increase in 2017, ending the year at $515 billion, up 5 percent from the 2016 volumes. MBA expects volumes to remain at roughly that level in 2018. MBA forecasts mortgage banker originations of just multifamily mortgages at $235 billion in 2017, with total multifamily lending at $271 billion. After strong growth in 2017, multifamily lending is expected to slow slightly in 2018.
"Commercial and multifamily markets remain strong, even as many growth measures are exhibiting a bit of a downshift," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Property values are up 6 percent through the first 8 months of this year. Despite a decline in property sales transactions, commercial and multifamily mortgage originations were 15 percent higher during the first half of this year than a year earlier. We expect stable property markets and strong capital availability to continue to support mortgage borrowing and lending in 2018."
Commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2017, ending the year roughly six 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 mba.org/crefresearch.