Mortgage Bankers Association President & CEO Robert D. Broeksmit, CMB, issued the following statement congratulating Joseph R. Biden Jr. on his election as 46th President of the United States:
MBA continues to closely monitor the results of our national elections and will provide a more thorough analysis as remaining details are finalized. In addition, MBA is closely tracking three California ballot initiatives that impact the real estate finance industry.
The economy continued its high-low pattern in Friday’s employment report from the Bureau of Labor Statistics. While total nonfarm payroll employment rose by a strong 638,000 in October, and the unemployment rate fell to 6.9 percent, both numbers reflect the devastating economic effects of the coronavirus pandemic.
Commercial and multifamily mortgage origination volumes tend to move nearly in lockstep with property sales activity. With the onset of the COVID-19 pandemic, both tumbled, but with some important caveats.
The Urban Land Institute, Washington, D.C., said a consensus of real estate economists surveyed expect a short-lived recession and above-average GDP growth in 2021 and 2022.
Commercial and multifamily mortgage bankers are expected to close $395 billion of loans backed by income-producing properties in 2020, a 34 percent decline from 2019's record $601 billion, according to a new Mortgage Bankers Association forecast.