WASHINGTON, D.C. — The Mortgage Bankers Association (MBA) has projected that commercial and multifamily originations will decline in 2017, ending the year at $478 billion—3 percent lower than volumes in 2016. For 2017, mortgage banker originations of just multifamily mortgages are forecast at $206 billion, with total multifamily lending at $245 billion.
“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,” says Jamie Woodwell, MBA’s vice president of commercial real estate research. “For many parts of the market, the downshift is a positive development.”
Commercial and multifamily mortgage outstanding debt is expected to continue to grow in 2017, ending the year approximately 2 percent higher than at the end of 2016.