MBA: 2017 Commercial/Multifamily Mortgage Bankers Originations Up 4%

The Mortgage Bankers Association said commercial and multifamily mortgage originations could reach $537 billion in 2017, up by 4 percent from expected 2016 volumes.

The MBA Commercial/Multifamily Real Estate Finance Forecast ( calls for mortgage banker multifamily originations to reach $224 billion in 2017; total multifamily lending could reach $272 billion. Originations for commercial real estate are forecast to reach $265 billion.

“Commercial real estate markets are carrying a great deal of momentum as they close out 2016,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Strong property fundamentals, increasing property values and sturdy sales activity–particularly among multifamily properties–are driving borrowing and lending to record levels.”

Woodwell noted that next year could bring “a variety of different market conditions,” but said MBA anticipates a growing economy coupled with only gradual interest rate increases “will continue to support strong commercial property and property finance, markets.”

MBA forecast commercial and multifamily mortgage debt outstanding to reach above $3 trillion in 2017, nearly 4 percent higher than at year-end 2016, Woodwell said.