The Mortgage Bankers Association’s (MBA) 2019 Commercial Real Estate Finance (CREF) Outlook Survey is forecasting a strong commercial and multifamily lending projection.
“Mortgage bankers look to 2019 as another strong year for the commercial and multifamily mortgage markets,” Jamie Woodwell, MBA’s vice president of Research and Economics, said. “The majority of top firms expect that strong appetites from both lenders and borrowers will drive commercial mortgage originations higher.”
Woodwell said several factors, including long-term interest rates, new construction activity, and the broader economy, are seen by a majority of loan originators as potentially somewhat negative to the markets in 2019, explaining the slight downshift in expectations this year compared to 2018.
All surveyed originators reported that, in 2018, lenders had a strong or very strong appetite to make new loans and expect lenders’ appetite this year to be strong or very strong; borrowers are still eager to take out loans. Eighty-eight percent of originators reported borrowers had strong or very strong appetites to take out new loans last year while 78 percent expect borrowers’ appetites this year to be strong or very strong.
The survey was conducted between Nov. 26 and Dec. 22, 2018. The survey request was sent to leaders of 60 of the top commercial / multifamily mortgage origination firms, as determined by MBA’s 2018 Annual Origination Rankings Report.