According to the Mortgage Bankers Association, commercial and multifamily mortgage originations in the U.S. will be down slightly in 2017, ending the year at $478 billion, a decrease of 3 percent from the 2016 volumes. Mortgage banker originations of just multifamily mortgages are forecast at $206 billion in 2017, with total multifamily lending at $245 billion.
"Commercial and multifamily market activity has downshifted at the start of 2017," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Markets continue to move forward, but the rapid increases in property values, transaction volumes and other fundamentals that characterized the post-recession period have given way to more regular changes tied to the economy as well as changes in supply and demand. For many parts of the market, the downshift is a positive development."
Commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2017, ending the year roughly two percent higher than at the end of 2016.
The National Association of Home Builders is reporting this week that U.S. home builder confidence in the market for newly-built single-family homes fell three points to a level of 64 in September 2017.
Hurricane Harvey's impact on Houston's commercial real estate market was significant.
. Houston's commercial real estate market is resilient after weathering Hurricane Harvey and the largest rainfall the area has recorded in decades.
According to global property advisor CBRE, increased investor demand from both international and domestic buyers contributed to further capitalization rate compression in the U.S. industrial real estate sector over the first half of 2017.
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI) released this week, rising U.S. home prices offset a quarter-point drop in mortgage interest rates to move housing affordability slightly lower in the second quarter of 2017.