As the Mortgage Bankers Association reported recently, multifamily lending hit a record high last year…and things are looking even better this year.
The MBA released a brief updated forecast this week, which states that multifamily lending is on track to set another record in 2018.
According to the MBA, it is expecting commercial and multifamily mortgage originations to hit $532 billion in 2018, a slight increase from last year’s total of $530 billion.
And the increase is even larger in multifamily.
The MBA is currently expecting mortgage banker originations of multifamily mortgages to rise 7% this year to $251 billion, with total multifamily lending checking in $302 billion.
And the gravy train is expected to keep on rolling, as the MBA expects multifamily lending to rise by 2% in 2019, as well.
“Commercial real estate finance markets are on pace to match last year's record volumes of borrowing and lending,” said Jamie Woodwell, MBA’s vice president of commercial real estate research.
“Property incomes and values continue to grow, albeit at slower paces than previous years, and the amount of capital looking to be placed in real estate and debt remains robust,” Woodwell continued. “We anticipate that much of the momentum seen this year will carry on into 2019.”
The MBA also said that commercial and multifamily mortgage debt outstanding is expected to continue rising in 2018, finishing up the year more than 6% higher than last year.