MBANow: MBA VP Jamie Woodwell on 2017 CREF Forecast
The Mortgage Bankers Association released a new MBANow video on YouTube featuring MBA Vice President of Commercial Real Estate Research Jamie Woodwell, who discusses the MBA 2017 forecast for the commercial real estate/multifamily housing markets.
The video can be accessed at https://www.youtube.com/watch?v=BCe9zgcwDi8&feature=em-uploademail.
“We’re expecting originations to remain strong,” Woodwell said. “For 2017 we are expecting total commercial real estate and multifamily originations to come in at around $515 billion, rising by about 2 percent in 2018.” He said multifamily originations have hit record levels for the past four years, which should continue in 2017.
Woodwell noted that supply and demand have both remained strong, which has been driving commercial/multifamily originations. “On the demand side, we saw banks and the GSEs [Fannie Mae and Freddie Mac] at or near record levels of originations; the one laggard was the [commercial mortgage-backed securities] sector, which started the year off slowly but picked up as the year went on. When we look at 2017, we see all of those capital sources having the capacity to meet or beat last year’s volume.”
On the demand side, bonds are being driven by property prices. “We think the market will continue to support this growth,” Woodwell said.
Other videos in the MBANow series can be viewed at the MBA YouTube channel, https://www.youtube.com/watch?v=Swk2VUJeZFI&feature=em-uploademail. The videos are also available on the MBA Insights landing page, https://www.mba.org/publications/insights/insights-publication##SubscriberID####RND##&PageID=21109.
