A little more than half way through the year and the Mortgage Bankers Association is out with a new lending outlook. Specifically zeroing in on commercial and multifamily lending, the MBA now anticipates borrowing will decline by 38 percent compared to 2022.
Multifamily lending alone is expected to drop to $299 billion in 2023, down 38 percent from last year’s total of $480 billion. The MBA anticipates borrowing and lending will rebound in 2024 to $856 billion in total commercial real estate lending, with $452 billion of that total in multifamily lending.
“Higher and volatile interest rates, uncertainty about property values, and questions about some property fundamentals have led to an impasse in property sales and mortgage originations activity this year,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “Our baseline economic forecast anticipates that interest rates will moderate over the next year and half, helping to break the current logjam in transaction activity and bringing relief to financing costs and property valuations.”