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CRE Firms Expect Increase In Originations Despite Rising Rates

January 9, 2019

Rising interest rates and a strengthened economy seems like it would send commercial real estate buyers into a bit of a frenzy. With pricing gains and having to fork over more money than they may have originally budgeted for, it's easy to see how commercial real estate firms may be worried about buyers holding off during these conditions. 

 

While it has been hard to maintain a positive outlook, a new report shows that CRE firms are actually optimistic about originations in 2019. 

 

"About 55% of commercial and multifamily firms anticipate growth in loan originations this year, with 13% expecting an increase of 5% or more across the overall market, according to the MBA's Commercial Real Estate Finance Outlook Survey," according to National Mortgage News

 

"When considering just their own institution's originations, this number rose to 38%."

 

In fact, Jamie Woodwell, vice president of research and economics for the MBA believes that "strong appetites from both lenders and borrowers will drive commercial mortgage originations higher," according to the report. 

 

The real disconnect between commercial and multifamily firms comes when explore origination volumes for "specific capital sources" such as commercial mortgage-backed securities and Fannie Mae/Freddie Mac.

 

To learn more about CRE firms outlook for 2019 and concerns, click on the image above. 

 

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