The Mortgage Bankers Association (MBA) projects originations of commercial and multifamily (C/MF) mortgages will grow to $414 billion in 2015, an increase of 7 percent from 2014, and continue to rise to $430 billion in 2016. [paragraph] MBA projects multifamily mortgages originated by mortgage bankers are forecast to increase to $152 billion in 2015. [paragraph] "Commercial and multifamily real estate finance markets are strong," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. "Rising property values, improving property fundamentals, low interest rates and higher loan maturity volumes should all help boost mortgage borrowing and lending in the coming year."
MBA said commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2015, ending the year at $2.7 trillion--more than 3 percent higher than at the end of 2014.
"There is more money being lent on multifamily than we've ever seen," Woodwell said. "All the economic strength that we're seeing is coming into a commercial real estate market that's really pretty darn strong to begin with."
Banks, thrifts and other investor groups had a very strong appetite for mortgages in 2014, Woodwell said. "Fannie Mae and Freddie Mac had a strong year, coming right up to their caps," he noted. "Life companies and insurance funds had a record year as well. There is an awful lot of capital flowing...