Multifamily, Commercial Lending To Drop 20% In 2023

The Mortgage Bankers Association has once again adjusted its commercial and multifamily lending expectations downward as economic uncertainty continues to constrain the market. MBA’s latest forecast shows commercial and multifamily borrowing falling 20% in 2023 to $654 billion, down from $816 billion in 2022. This is a $9 billion reduction from its January prediction. Multifamily on its own accounts for a 14% drop, slipping from $437 billion in 2022 to $375 billion this year. Apartment investment sales declined at the end of 2022 in response to the Central Bank raising interest rates. “Higher interest rates, uncertainty about property values, and questions about the outlook for the cash flows of some properties led to a slowdown in commercial real estate transactions…