While lending terms remain attractive, this year is not expected to be as strong as 2017
The volume of commercial and multifamily originations will drop slightly in 2018 and remain at roughly that level in 2019 as well, according to projections released by the Mortgage Bankers Association (MBA).
Commercial and multifamily mortgage originations are expected to total $519 billion at the end of the year, which is a decline of 2% from 2017 volumes.
Multifamily lending is projected to reach $257 billion this year. The mortgage banker share of originations of just multifamily mortgages is estimated to reach $231 billion, according to the MBA. Multifamily lending, which posted strong growth in recent years, is expected to hold roughly steady in 2019.
"Last year was a record for commercial and multifamily borrowing and lending," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Lending terms remain extremely attractive, and we expect another strong year in 2018, although perhaps not quite as strong as 2017."
Debt outstanding for commercial and multifamily mortgages is expected to keep growing this year. MBA said it expects total debt to be 7% higher compared to the end of 2017.
