The Mortgage Bankers Association (MBA) projects commercial and multifamily mortgage originations will be down slightly in 2017, ending the year at $478 billion, a decrease of 3% from the 2016 volumes.
Mortgage banker originations of just multifamily mortgages are forecast at $206 billion in 2017, with total multifamily lending at $245 billion, according to the MBA.
Jamie Woodwell, the MBA’s vice president of commercial real estate research, says, “Commercial and multifamily market activity has downshifted at the start of 2017. Markets continue to move forward, but the rapid increases in property values, transaction volumes and other fundamentals that characterized the post-recession period have given way to more regular changes tied to the economy, as well as changes in supply and demand. For many parts of the market, the downshift is a positive development.”
Commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2017, ending the year roughly 2% higher than at the end of 2016.