MBA: 2017 Commercial and Multifamily Originations to Hit $515B

October 26, 2017
Originators in the commercial and multifamily mortgage space are looking ahead into the next 12 months with expectations for another strong year
The Mortgage Bankers Association (MBA) is forecasting a 2017 increase in commercial and multifamily mortgage originations that will reach $515 billion by year’s end, up five percent from the 2016 volume. The trade group is also forecasting volumes to remain at roughly that level in 2018.
Focusing solely on the multifamily sector, the MBA is looking to end 2017 with $235 billion in multifamily mortgages, with total multifamily lending at $271 billion. After strong growth in 2017, multifamily lending is expected to slow slightly in 2018.
"Commercial and multifamily markets remain strong, even as many growth measures are exhibiting a bit of a downshift," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Property values are up six percent through the first eight months of this year. Despite a decline in property sales transactions, commercial and multifamily mortgage originations were 15 percent higher during the first half of this year than a year earlier. We expect stable property markets and strong capital availability to continue to support mortgage borrowing and lending in 2018."