Commercial and multifamily mortgage originations are expected to increase, according to the Mortgage Bankers Association (MBA). The MBA’s survey of top commercial and origination firms found that lenders’ appetites to place new loans and borrowers’ appetite to borrow remain strong.
Roughly two-thirds of the lenders surveyed anticipate originations to increase in 2017, with about a quarter anticipating an increase of 5% or more. Half believe their company’s originations will rise 5% or more.
According to the survey, 96% of originators had a “strong” or “very strong” appetite to make new loans and 77% think lenders’ overall appetites to remain the same for 2017. When it comes to their own firms, 85% of originators expect their appetite to make new loans to remain “strong” or “very strong.”
Likewise, those surveyed believe that borrowers are looking to take out loans, with over two-thirds of originators anticipating borrowers to have a “strong” or very strong” appetite for mortgages.
“Commercial mortgage bankers expect 2017 to carry-over much of the momentum from 2016,” said Jamie Woodwell, MBA’s Vice President for Commercial Real Estate Research. “Most of the top firms expect strong demand from both lenders and borrowers in 2017, although not quite as strong as 2016. Originators generally see borrowing and lending volumes growing slightly, with just over half expecting potential regulatory and legislative changes to be positive for the market. The survey paints expectations of a strong, steady market in 2017.”