“In 2015, commercial and multifamily mortgage debt grew by the largest amount since the series began in 2007; multifamily mortgage debt grew at the fastest pace since that series began in 1993; and the amount of commercial and multifamily mortgage debt held in agency and GSE portfolios and MBS and on bank balance sheets grew more than in any previous year on record.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.
“A number of market and regulatory factors are impacting the commercial and multifamily real estate finance markets. As just one example, in the past month, several Wall Street analysts have reduced their expectations for 2016 commercial mortgage-backed securities issuance by 25 to 30 percent.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.
“As MBA recommended last year and at subsequent meetings, we believe it is appropriate for HUD to recalibrate MIPs as a reflection of the sustained strong performance of the FHA multifamily insured portfolio with its delinquency rate of less than one-quarter of a percent and because of the growing need for multifamily affordable rental housing.”–Robert Warren, Managing Director and FHA Chief Underwriter for Wells Fargo Multifamily Capital
“Outside of the volatility of the Chinese stock market, which spooked markets globally back in August and has done so again recently, there is a wider concern about global economic growth.”
–JLL Global Capital Markets Research Director David Green-Morgan.
“In the face of the first Fed move in rates in December, market uncertainty still rallied 10-year Treasurys over thirty basis points since the third quarter. At the same time, lender sentiment has turned very cautious.”–Brian Olasov, Executive Director of Financial Services Consulting with Carlton Fields, New York.
“Whether it’s by keeping interest rates well below the normalized rate such as the U.S. or by moving forward with the additional capital injections occurring in many other countries, the bottom line is that [central banks] will continue to take extraordinary measures to prolong this business cycle. And more likely than not, those extraordinary measures will continue to create a highly robust–albeit highly uneven–real estate environment.”–Kevin Thorpe, Chief Economist with Cushman & Wakefield, New York.
“Property incomes are rising, interest rates are low and property values are up. We expect the momentum to continue into 2016 and to support both the demand for and supply of commercial and multifamily mortgage capital.”
–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.
“Engagement is the key to sustainable success. Overcoming challenges and achieving these goals to maintain a strong commercial/multifamily marketplace only occurs when we work together.”
–MBA President and CEO David Stevens, CMB.
“Liquidity of debt financing in the hotel sector remains robust, which is good news for borrowers.” –Stephen O’Connor, Principal with RobertDouglas, New York.
“The financial and real estate markets appear stable as we begin 2016, but variables now surfacing could undermine short-term prosperity. The year ahead seems to be the waning days of a prosperous cycle–perhaps even a cyclical top in liquidity, pricing and transaction velocity.”–Avison Young Chair and CEO Mark Rose.