July 22, 2020
Commercial and multifamily mortgage bankers are expected to close $248 billion of loans backed by income-producing properties in 2020, a 59% decline from 2019’s record volume of $601 billion, the Mortgage Bankers Association (MBA) reported.
Total multifamily lending alone, which includes some loans made by small and midsize banks not captured in the overall total, is forecast to fall 42% this year. MBA anticipates a partial rebound in lending volumes in 2021, with commercial/multifamily lending rising to $390 billion.
“The ongoing COVID-19 pandemic continues to disrupt commercial and multifamily real estate markets,” said Jamie Woodwell, MBA’s VP for commercial real estate research. He said NOI, values and cap rates across the different property types are “expected to experience varying levels of stress in the months ahead, with hotel and retail properties already being the hardest hit.”
However, Woodwell added that “the multifamily sector has held up quite well so far.”
Pictured: MBA headquarters in Washington, DC.
For comments, questions or concerns, please contact Paul Bubny