MBA Forecast: Commercial/Multifamily Lending Expected to Fall 46 Percent to $442 Billion in 2023

October 19, 2023 Commercial / Multifamily MBA Research Press Release


Falen Taylor

(202) 557-2771

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WASHINGTON, D.C. (October 19, 2023) — Total commercial and multifamily mortgage borrowing and lending is expected to fall to $442 billion this year, which is a 46 percent decline from 2022’s total of $816 billion. This is according to an updated baseline forecast released today by the Mortgage Bankers Association (MBA).

Multifamily lending alone (which is included in the total figures) is expected to drop to $285 billion this year – a 41 percent decline from last year’s total of $480 billion. MBA anticipates borrowing and lending next year will increase to $559 billion in total commercial real estate lending, with $339 billion of that total in multifamily lending.

"The logjam in the commercial real estate markets that began last summer has remained firmly in place,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “Questions about supply and demand dynamics for some properties, the rise and volatility in interest rates, and the low number of transactions and coinciding lack of price discovery have all contributed to a marked decline in demand for new mortgages. Unfortunately, those and other factors will likely continue to exert downward pressure on borrowing and lending volumes in the coming quarters.”

Woodwell continued, “Commercial mortgage originations have historically followed property prices, and the uncertainty about the future path of interest rates has been a contributing factor to the current slowdown.  If interest rates and cap rates were to fall, that should help boost values and promote borrowing. If they remain higher for longer, as is increasingly likely, that will suppress activity. This uncertainty is a contributing factor in today’s slowdown.”

For additional commentary on the sector, visit MBA's Commercial/Multifamily Market Intelligence Blog.

MBA's commercial/multifamily members can download a copy of MBA's latest Commercial/Multifamily Real Estate Finance Forecast at