Commercial and multifamily mortgage originations are expected to grow to $300 billion in 2014, rising 7% from 2013 volumes and will continue to rise to $333 billion in 2016, the latest Mortgage Bankers Association originations suggest.
“Early indications are that commercial and multifamily lenders increased originations by 15% in 2013,” said Jamie Woodwell, MBA’s vice president of commercial real estate research.
“This year will once again see fewer loans coming up against their maturities. But with still low interest rates, improving property fundamentals, a rebound in property prices and higher loan maturity volumes on the horizon, we anticipate mortgage originations will continue to increase in 2014,” Woodwell said.
In addition, commercial and multifamily mortgage debt outstanding is expected to continue to grow in 2014, ending the year at almost $2.6 trillion, more than 3% higher than at the end of 2013.
Mortgage debt outstanding is predicted to near $2.7 trillion by the end of 2016.
In January, the MBA lowered its 2014 predictions for residential mortgage originations by $57 billion to $1.12 trillion.
"Despite an economic outlook of steady growth and a recovering job market, mortgage applications have been decreasing – likely due to a combination of rising rates and regulatory implementation, specifically the new Qualified Mortgage Rule," said Mike Fratantoni, chief economist for MBA.