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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).