After years of slow recovery, it seems the commercial mortgage market is finally back on track. The economy continues to improve, while key sectors of the industry are exceeding expectations. If you’re looking to earn extra income in 2015, brokering small-balance commercial mortgages is a great option. Here’s why:
Loan volume has increased
The Mortgage Bankers Association is projecting a record year for commercial mortgage originations. Volume is expected to hit $300 billion, a 7% increase from 2014. And the market is finished growing — the MBA has projected that commercial and multifamily mortgage volume will increase to $333 billion by 2016.
Consumers and borrowers are more confident
As the U.S. economy continues to grow, consumer confidence rises. The United States has added about 2.65 million jobs in 2014, which is an average of 241,000 per month. Unemployment has held steady at 5.8% for the past couple of months. Because of the economic growth, consumers are more willing to spend, and business owners are more willing to borrow.
Multifamily properties are leading the way
The multifamily mortgage market has performed very well in 2014. With tighter credit standards, many consumers have turned to rental properties, and the market has benefited greatly. Demand remains slightly higher than supply, and the multifamily market is expected to continue growing.
With increased volume, confident consumers and borrowers and an expanding multifamily industry, 2014 has been an excellent year in the commercial mortgage industry. The overall health of the commercial mortgage market makes now the perfect time to begin brokering small-balance commercial mortgages or to search for new business.