Thursday, February 4, 2016

MBA Forecasts Commercial/Multifamily Mortgage Bankers Originations to Hit New Record in 2016

Jamie Woodwell
ORLANDO, FL (Feb. 1, 2016) -- The Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will grow to $511 billion in 2016, an increase of 3 percent from 2015 volumes and slightly more than the previous record of $508 billion originated in 2007.  

Mortgage banker originations of multifamily mortgages are forecast at $202 billion in 2016, with total multifamily lending at $262 billion.

“This past year was extremely strong for commercial real estate finance,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.

“Property incomes are rising, interest rates are low and property values are up.  We expect the momentum to continue into 2016 and to support both the demand for and supply of commercial and multifamily mortgage capital. 

“We anticipate a growing economy, coupled with only gradual increases in interest rates, will continue to support a strong commercial property market. But, there is a chance that cap rates could increase more rapidly in response to rising interest rates, impacting property sales and mortgage originations.”

For a complete copy of the company’s news release, please contact:

Ali Ahmad
(202) 557-2727

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