Commercial and multifamily lending decreases 8% in 2022

 

According to Mortgage Banker Association, total commercial real estate mortgage originations reached $816B in 2022, decreasing by 8% from the previous year.  This is the second-highest total volume on record.  Head of commercial real estate research, Jamie Woodwell, said lending activity started strong in 2022 and then dropped off because of rising interest rates and property value uncertainty.  He added that the key question for 2023 is when the market will be stabilized enough for the logjam in new deal activity to break.  Depositors accounted for $408B of total originations and were the largest funder among capital sources, followed by Fannie Mae and Freddie Mac.  Compared to the CRE mortgage origination in 2020, last year saw a 33% increase from $614B.