In its recent forecast, MBA said it expects a $504 billion plunge in commercial/multifamily lending volumes, down 38% from $816 billion in 2022.
Read more: Why the commercial real estate market is expected to sink $504 billion
All commercial property types registered lower origination volumes in Q2: dollar volume of loans for healthcare properties was down 74% annually, office property originations were down 66%, retail and industrial properties both saw a 55% decline, multifamily loan volume fell 48%, and hotel properties slumped 32%.
Among investor types, depositories reported the largest decrease (69%) in the dollar volume of loans, followed by a 60% decrease for investor-driven lenders, a 49% decrease in life insurance company loans, a 23% decrease for commercial mortgage-backed securities (CMBS), and an 11% decrease in the dollar volume of loans backed by Fannie Mae and Freddie Mac.
“We expect the logjam to begin to break in coming quarters, but the path forward will depend on where interest rates and other aspects of the economy go from here,” Woodwell said.
Source: mpamag.com