MBA: Commercial and Multifamily Mortgage Activity Will Expand in 2017

Next year will be a banner time for commercial and multifamily mortgages, according to a new forecast from the Mortgage Bankers Association (MBA).

The trade group is projecting that originations of commercial and multifamily mortgages will grow to $537 billion in 2017, an increase of four percent from expected 2016 volumes of $515 billion. Mortgage banker originations of multifamily mortgages are being forecast at $224 billion next year, with total multifamily lending at $272 billion. Commercial/multifamily mortgage debt outstanding is expected to grow above $3 trillion by the end of 2017, almost four percent higher than at the end of 2016.

"Commercial real estate markets are carrying a great deal of momentum as they close out 2016," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Strong property fundamentals, increasing property values and sturdy sales activity–particularly among multifamily properties–are driving borrowing and lending to record levels. While next year could bring a variety of different market conditions, we anticipate a growing economy, coupled with only gradual increases in interest rates, will continue to support strong commercial property, and property finance, markets."