Commercial, multifamily originations to match 2017 volumes

by Francis Monfort08 Nov 2018

Commercial and multifamily originations in 2018 should be roughly on par with record activity seen last year, according to projections by the Mortgage Bankers Association.

MBA said it expects commercial and multifamily mortgage originations to total $532 billion in 2018, slightly up from the $530 billion record volume in 2017.

Mortgage banker originations of just multifamily mortgages are forecast to rise 7% this year to $251 billion, with total multifamily lending at $302 billion. Commercial and multifamily mortgage debt outstanding is expected to continue to grow in 2018, ending the year more than 6% higher than last year.

Additionally, MBA expects multifamily lending to rise 2% in 2019 following strong growth seen in recent years.

"Commercial real estate finance markets are on pace to match last year's record volumes of borrowing and lending," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Property incomes and values continue to grow, albeit at slower paces than previous years, and the amount of capital looking to be placed in real estate and debt remains robust. We anticipate that much of the momentum seen this year will carry on into 2019."