Commercial and multifamily mortgage originations are projected to grow to $537 billion in 2017, a 4% increase from the expected 2016 volumes of $515 billion, according to new data from the Mortgage Bankers Association (MBA). Multifamily mortgage originations are expected to reach $224 billion in 2017, with total multifamily lending hitting $272 billion.
“Commercial real estate markets are carrying a great deal of momentum as they close out 2016,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Strong property fundamentals, increasing property values and sturdy sales activity – particularly among multifamily properties – are driving borrowing and lending to record levels. While next year could bring a variety of different market conditions, we anticipate a growing economy, coupled with only gradual increase in interest rates, will continue to support strong commercial property, and property finance, markets.”
Additionally, commercial and multifamily mortgage debt outstanding is expected to rise to over $3 trillion in 2017, a nearly 4% increase from 2016’s projected total.
With originations expected to remain strong throughout 2017, now is a great time for mortgage brokers to consider closing more small-balance commercial mortgages. These loans are a quick, simple way to add to the products you offer and to increase your overall income.