MBA: Lower Commercial and Multifamily Originations Forecasts

Jun 22, 2017

The so-called “mandatory inclusion” guideline used by many cities to require a specific amount of affordable units be reserved in new residential developments has hit a major roadblock in Tennessee

The Mortgage Bankers Association (MBA) is forecasting that the level of commercial and multifamily mortgage originations will end 2017 with a whimper instead of a bang.

In a new analysis, the trade group predicted that this sector will end the year at $478 billion, a three percent below last year’s volumes. The MBA added that mortgage banker originations of multifamily mortgages only will reach $206 billion by New Year’s Eve, with total multifamily lending at $245 billion.

However, commercial/multifamily mortgage debt outstanding should end the year two percent higher than at the end of 2016.

"Commercial and multifamily market activity has downshifted at the start of 2017," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. "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. For many parts of the market, the downshift is a positive development."

About the author

Phil Hall

Link copied

Published

Jun 22, 2017

Analysis and Data

A Decade Passed And The Homes Got Younger

New construction makes its way especially into certain U.S. cities, while borrowers purchasing more new housing stock

The median age of U.S. homes is now 45 years — think of a house built in 1980 — which is four years newer than the median home age a decade ago. Look closer, though, and you’ll find very different stories across particular states' and cities' markets. A new study from Pr...

Analysis and Data

IMBs Report Modest Losses Amid Rising Costs In Late 2024

Falling percentage of mortgage companies reporting a pre-tax net financial profit

Independent mortgage banks (IMBs) and the mortgage divisions of chartered banks reported an average pre-tax net loss of $40 per loan in the fourth quarter of 2024, a sharp reversal from the $701 per-loan profit recorded in the previous quarter, according to new data from the...