This year’s projected commercial mortgage production is modestly higher than last year’s volume. Next year’s originations are expected to match 2017.
An estimated $515 billion in commercial real estate loans, including multifamily, are expected to have been originated by the time this year concludes.
That’s an improvement compared to last year, when commercial mortgage production was previously reported at $490.6 billion.
The latest forecast was made Thursday by the Mortgage Bankers Association.
During 2018, MBA predicts that CRE loan originations will come in near the 2017 projection.
Multifamily originations are projected to reach $271 billion during all of 2017. Mortgage bankers are expected to generate $235 billion of this year’s expected total.
MBA reported last week that 2016 apartment lending came to $269.2 billion.
“Commercial and multifamily markets remain strong, even as many growth measures are exhibiting a bit of a downshift,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in the report. “Property values are up 6 percent through the first 8 months of this year.
“Despite a decline in property sales transactions, commercial and multifamily mortgage originations were 15 percent higher during the first half of this year than a year earlier.”
