MBA: Lower Commercial and Multifamily Originations Forecasts

MBA: Lower Commercial and Multifamily Originations Forecasts

June 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."