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| Jamie Woodwell |
WASHINGTON, DC --The Mortgage Bankers
Association (MBA) projects originations of commercial and multifamily mortgages
will total $500 billion in 2016, roughly flat from the $504 billion originated
in 2015 and slightly less than the record of $508 billion originated in 2007.
Mortgage banker originations of multifamily
mortgages are forecast at $210 billion in 2016, with total multifamily lending
at $273 billion.
"The year has started
off with more than its fair share of twists and turns," said Jamie Woodwell, MBA's Vice President of
Commercial Real Estate Research.
“When all is said and
done, commercial and multifamily real estate finance markets are likely to end
2016 with another strong year of borrowing and lending. On the demand side, strong property
fundamentals and prices should continue to support an active sales market,
which will drive mortgage demand."
Woodwell said, "On
the supply side, solid originations for life companies, Fannie Mae, Freddie Mac
and bank portfolios are expected to make-up for some – but not all – of the
slowdown in the CMBS market this year.
“The net result will
likely be 2016 originations coming in just a shade lower than 2015 levels. Global economic uncertainty and a range of
regulations that could affect the availability of CRE financing remain
wildcards.”
Commercial/multifamily
mortgage debt outstanding is expected to continue to grow in 2016, ending the
year at $2.9 trillion, more than three percent higher than at the end of 2015.
MBA's
commercial/multifamily members can download a copy of MBA's
Commercial/Multifamily Real Estate Finance Forecast at www.mba.org/research.
For a
complete copy of the company’s news release, please contact:
Ali Ahmad
(202) 557-2727
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