MBA projects record commercial/multifamily lending totals

A newly released Mortgage Bankers Association (MBA) forecast maintains total commercial and multifamily mortgage borrowing and lending is slated to exceed $1 trillion for the first time this year.

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The predicted outcome was issued during the MBA’s 2022 Commercial/Multifamily Finance Convention and Expo.

MBA Vice President for Commercial Real Estate Research Jamie Woodwell said 2021 was a remarkable year for commercial real estate markets, adding the organization expects 2022 to continue the momentum.

“Commercial real estate lending volumes are closely tied to the values of the underlying properties,” Woodwell said. “In 2021, those values rose by more than 20 percent, and those increases will fuel further demand for mortgage debt in the coming years. Continued increases in property incomes, and stability in the ways investors value those incomes, should also support solid demand for mortgage capital, even in the face of modest increases in interest rates.”

The commercial real estate finance (CREF) forecast targets total commercial real estate lending. Previous forecasts focused on the work of dedicated commercial/multifamily lenders and excluded mortgages issued by smaller and midsized depositories.

Additionally, officials revealed multifamily lending is estimated to increase to $493 billion this year, representing a new record and a 5 percent rise surpassing last year’s record total of $470 billion.