Chart of the Week: MBA’s CREF Bingo Card

Many of us recently returned from a week in San Diego at MBA’s Commercial Real Estate/Multifamily Finance Convention and Expo, where 2,000-plus CRE mortgage professionals gathered to hear from speakers, discuss policy issues, network, and – most importantly – begin the year’s deal-making in earnest.

MBA Chart of the Week: Selected Indexes of Housing Costs

The monthly cost burden of purchasing a new home, as interest rates and house prices rose precipitously in 2022, continued in the first few months of 2023. For example, MBA’s Purchase Applications Payment Index (PAPI), hit a new high in May. Since then, despite 30-year mortgage interest rates eclipsing 7%, the index has come down slightly as median loan application amounts moderated. We are, however, still in record territory as shown by the solid green line in this week’s chart.

MBA Chart of the Week July 6, 2023: Office Property Sales Volumes and Values

In commercial real estate, all eyes remain on the office market.  That is despite the fact that multifamily mortgage debt – accounting for $2.0 trillion of the $4.6 trillion of total outstanding — is almost three times as large and office accounts for just 17 percent of total CRE debt.

MBA Chart of the Week: Commercial and Multifamily Mortgage Debt Outstanding

Two questions have dominated the CRE headlines of late: a) the reliance of banks on commercial real estate and b) the reliance of commercial real estate on banks.  We addressed the former in a previous Chart of the Week.  Here we look at the latter with a particular focus on office — the property type attracting the greatest scrutiny.