MBA Chart of the Week Jan. 12, 2023: CRE Lending/Borrowing

Commercial real estate markets are entering 2023 amid a great deal of uncertainty and, as a result, a significant slowdown in activity. Leaders of top commercial real estate finance firms believe that overall uncertainty will dissipate over the course of the year, but with a host of factors that will drag – rather than boost – the markets in 2023.

MBA CREF Outlook Survey: Unsettled Markets to Dissipate in 2023

Commercial and multifamily mortgage originators are experiencing an unsettled market for borrowing and lending but anticipate those conditions will slowly stabilize over the course of this year, the Mortgage Bankers Association’s 2023 Commercial Real Estate Finance Outlook Survey found.

MBA: 3Q Commercial, Multifamily Mortgage Debt Outstanding Up $70B

Commercial and multifamily mortgage debt outstanding increased by $70.0 billion (1.6 percent) in the third quarter, the Mortgage Bankers Association reported in its quarterly Commercial/Multifamily Mortgage Debt Outstanding Report.

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“The delinquency rate for mortgages backed by commercial and multifamily properties remained low at the end of the third quarter. For example, the share of bank-held CRE loan balances that were delinquent has only been lower once–just before the onset of the COVID-19 pandemic–in the series’ 30-year history.”

–Jamie Woodwell, MBA Head of Commercial Real Estate Research.