Total commercial and multifamily mortgage borrowing and lending is expected to hold steady at a projected $895 billion of total lending in 2022, according to the latest forecast released this week by the Mortgage Bankers Association (MBA). This figure is roughly in line with 2021 totals ($891 billion), according to MBA.
Key findings:
– Multifamily lending alone (which is also included in the total figures above) is expected to fall to $418 billion in 2022—down 11% from last year’s estimated record of $470 billion.
– MBA anticipates borrowing and lending to grow in 2023, with almost $950 billion of total commercial real estate lending, and $442 billion in multifamily lending.
The takeaway:
“The economic and interest rate outlook has shifted since MBA’s last updated commercial real estate finance (CREF) forecast in February,” said Jamie Woodwell, MBA’s vice president for Commercial Real Estate Research. “The rapid rise in interest rates is expected to take some wind out of the sails of new lending activity, but healthy property fundamentals and strong property values should support the markets and keep commercial real estate mortgage demand at strong levels. Borrowing and lending should still match last year’s record levels.”
Woodwell continued, “Multifamily lending is expected to remain robust during the rest of 2022 but is now expected to fall short of 2021’s record-high volumes.”
Download a copy of MBA’s latest Commercial/Multifamily Real Estate Finance Forecast at www.mba.org/crefresearch.
