MBA Forecast: 2017 to See Continued Growth in Commercial/Multifamily Real Estate Finance

February 23, 2017

SAN DIEGO–The Mortgage Bankers Association projects commercial and multifamily mortgage originations to grow to $515 billion in 2017, an increase of 3 percent from $502 billion in 2016 estimated volumes.

Mortgage banker originations of multifamily mortgages, specifically, are forecast at $219 billion in 2017, with total multifamily lending at $267 billion.

“Nationally, commercial real estate fundamentals and prices remain strong,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “That overall strength is expected to continue to support active sales and mortgage markets.”

Woodwell noted rising interest rates could take a bit of wind out of the market, “but even so, modest increases in originations should bring 2017 to record levels of borrowing and lending for commercial, and particularly multifamily, properties.”

MBA projects commercial/multifamily mortgage debt outstanding to continue to grow in 2017, ending the year above $3 trillion, nearly 4 percent higher than at the end of 2016.

MBA commercial/multifamily members can download a copy of theCommercial/Multifamily Real Estate Finance Forecast at www.mba.org/crefresearch.