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MBA Forecasts 31% Y-O-Y Increase in CRE Lending This Year
Commercial and multifamily mortgage bankers are expected to close $578 billion of loans backed by income-producing properties in 2021, a 31% increase over 2020 levels, the Mortage Bankers Association (MBA) said Tuesday. MBA forecasts $409 billion of total multifamily lending, a new record for the sector.
MBA anticipates additional increases in lending volumes next year, with activity rising to $597 billion in commercial/multifamily mortgage bankers originations and $421 billion in total multifamily lending.
“Commercial and multifamily real estate markets are moving past the pain that the COVID-19 pandemic caused in 2020,” said Jamie Woodwell, MBA’s VP for commercial real estate research. “There remain significant differences by property type, but incomes have rebounded strongly and investor interest in real estate and real estate finance is robust. The result is strong property appreciation and increased transaction activity, both of which are fueling financings.”
Woodwell added, “MBA’s forecast anticipates the economic rebound to continue this year and next, with real estate benefiting both from a rebound from last year’s lows, and from broader economic growth.”
- ◦Financing
