U.S. Commercial Lending to Increase 11 Percent to $486 Billion in 2021

U.S. commercial and apartment building mortgage lenders are expected to borrow $ 486 billion in income-generating real estate in 2021, according to new projections from the Mortgage Bankers Association. This corresponds to an increase of 11 percent from the estimated volume of 440 billion US dollars in 2020.

Multi-family loans alone, which include some small and medium-sized bank loans that are not included in the total, are projected to increase to $ 323 billion in 2021 – a 7 percent increase from the estimated total of $ 302 billion in the Previous year. MBA expects an additional increase in loan volume for 2022. Activity soars to $ 539 billion for commercial / multi-family mortgage lenders and to $ 358 billion for multi-family loans.

“The COVID-19 pandemic has severely impacted commercial and multi-family property sales and mortgage generation in 2020,” said Jamie Woodwell, MBA vice president of commercial real estate research. “The effects were very different depending on the type of property and source of capital – with housing and retail feeling the greatest downward pressure. The multi-family sector was able to hold its own far better because of the refinancing activities with government-supported loans.”

Woodwell added, “The sharp decline in mortgage lending and credit in 2020 is likely to reverse partially in 2021. The economic upturn that MBA expects in the second half should bring more stability to markets, but with continued property type differentiation. Much The way forward depends on the virus and our confidence and our ability to get past it. “