Commercial and multifamily mortgage bankers are expected to close $578 billion of loans backed by income-producing properties in 2021 – a 31% increase from 2020’s volume of $442 billion, according to the Mortgage Bankers Association’s (MBA) newest forecast.
Total multifamily lending alone, which includes some loans made by small and midsize banks not captured in the overall total, is forecast to rise to $409 billion in 2021 – a new record and a 13% increase from last year’s total of $360 billion.
MBA anticipates additional increases in lending volumes in 2022, with activity rising to $597 billion in commercial/multifamily mortgage bankers originations and $421 billion in total multifamily lending.
“Commercial and multifamily real estate markets are moving past the pain that the COVID-19 pandemic caused in 2020,” says Jamie Woodwell, MBA’s vice president for commercial real estate research. “There remain significant differences by property type, but incomes have rebounded strongly and investor interest in real estate and real estate finance is robust. The result is strong property appreciation and increased transaction activity, both of which is fueling financings.”
Read the full forecast here.
