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MBA Forecasts Slowdown in CRE Lending for 2022’s Second Half
Total commercial and multifamily mortgage borrowing and lending is expected to fall to $733 billion this year, down 18% from 2021’s $819 billion, the Mortgage Bankers Association (MBA) said Tuesday. Multifamily family lending alone is expected to incur a 10% year-over-year decline to $436 billion.
“The rapid changes taking place across space, equity and debt markets are having a significant effect on commercial and multifamily real estate transaction volumes,” said Jamie Woodwell, MBA’s VP for commercial real estate research.
He continued, “After a record start to the year, we expect that the rise in rates, ongoing uncertainty about supply and demand balances among some property types, and concerns about the direction of the economy will suppress new loan originations in the second half of the year.”
Woodwell added that the “uncertain” direction of the economy will be a major driver of market changes. MBA expects lending to rebound in 2023.
- ◦Financing
- ◦Economy
