CRE Loan Volume Projected to Improve in 2021, 2022
Commercial and multifamily mortgage bankers are expected to close $486 billion of loans in 2021, an 11% increase from 2020’s estimated volume of $440 billion, according to the Mortgage Bankers Association. However, the 2021 projection is nearly 20% below 2019’s all-time high of $600.6 billion.
“The COVID-19 pandemic took a heavy toll on commercial and multifamily property sales and mortgage originations in 2020,” said Jamie Woodwell, MBA’s VP for commercial real estate research.
Woodwell added, “The steep declines in mortgage borrowing and lending seen in 2020 should partially reverse in 2021. The economic rebound MBA anticipates in the second half of the year should bring greater stability to the markets, but with continued differentiation by property type. Much of the path forward will depend on the virus and our confidence and ability to move past it.”
MBA expects further improvement in 2022, with lending volumes rising to $539 billion.
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