Projection: U.S. Commercial Lending to Decline by 38% in 2023



The Mortgage Bankers Association (MBA) predicts that total U.S. commercial and multifamily mortgage borrowing and lending will plummet by 38 percent this year, reaching a total of $504 billion.

In recent years, the landscape of commercial lending in the United States has been facing significant challenges. The Mortgage Bankers Association (MBA) predicts that total U.S. commercial and multifamily mortgage borrowing and lending will plummet by 38 percent this year, reaching a total of $504 billion. This substantial decline is a result of various factors, including higher interest rates and prevailing economic uncertainty.

Projection: U.S. Commercial Lending to Decline by 38% in 2023

The impact of these market conditions has been particularly evident in multifamily lending, which is a crucial component of the overall commercial lending sector. According to the MBA, multifamily lending, which is inclusive of the total figures, is expected to witness a steep decline to $299 billion in 2023. This drop represents a 38 percent decrease from the previous year's total of $480 billion. However, experts anticipate a rebound in borrowing and lending activities in 2024, with a projected total of $856 billion in commercial real estate lending, including $452 billion specifically in multifamily lending.

The key driver for this anticipated decline in U.S. commercial lending is the higher interest rates that borrowers are facing. As rates increase, businesses and individuals alike become more cautious about taking on debt, subsequently impacting the demand for commercial loans. Additionally, economic uncertainty further exacerbates the situation, as businesses tend to restrain investments and expansion plans until the economic climate stabilizes.

Despite these challenges, there is hope for the industry. Lenders and borrowers alike must adapt their strategies to meet the changing circumstances and seize the opportunities brought about by these shifting tides. Understanding market trends, improving loan products, and providing tailored lending solutions can help both lenders and borrowers navigate through this challenging period.

Projection: U.S. Commercial Lending to Decline by 38% in 2023

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


Landlords Call for Rogue Tenant Register to Safeguard Properties

Leaders Romans Group research reveals landlords' push for a tenant register to track problematic tenants. Protect your property investments now.

Leaders Romans Group research reveals landlords\' push for a tenant register to track problematic tenants. Protect your property investments now.

Read more

The Shocking Truth: Rents in Spain Have Doubled in These Areas

Discover the regions, cities, towns, and neighborhoods in Spain where rents have more than doubled in the past decade. Find out why prices have skyrocketed.

Discover the regions, cities, towns, and neighborhoods in Spain where rents have more than doubled in the past decade. Find out why prices have skyrocketed.

Read more

UK Housing Market: Surging Interest in Scottish Real Estate Despite Taxes

Despite the high tax burden, demand for Scottish property remains strong. Find out why investors are still flocking to the market.

Despite the high tax burden, demand for Scottish property remains strong. Find out why investors are still flocking to the market.

Read more

Homeowners at Risk: Banks Listing Houses for Sale Amid Mortgage Crisis

Explore the urgency faced by homeowners as banks prepare to sell houses due to mortgage struggles, highlighting the ongoing housing market challenges.

Explore the urgency faced by homeowners as banks prepare to sell houses due to mortgage struggles, highlighting the ongoing housing market challenges.

Read more

Netherlands Home Prices Surge 7.5% in April, Exceeding July 2022 Peak

Existing owner-occupied home prices in the Netherlands rose by 7.5% in April, surpassing the previous peak set in July 2022. Find out more from Statistics Netherlands and the Land Registry.

Existing owner-occupied home prices in the Netherlands rose by 7.5% in April, surpassing the previous peak set in July 2022. Find out more from Statistics Netherlands and the Land Registry.

Read more

Young Canadians Fleeing Expensive Cities for Affordable Suburbs

Discover why young people in Canada are ditching expensive cities like Toronto for more affordable suburbs and cities. Read more here.

Discover why young people in Canada are ditching expensive cities like Toronto for more affordable suburbs and cities. Read more here.

Read more

Salcombe, Devon Reigns as UK's Most Expensive Seaside House Price Hotspot

Explore the opulent retreat of Salcombe, Devon, dominating the list of Britain's priciest coastal towns with its luxurious properties and breathtaking views.

Explore the opulent retreat of Salcombe, Devon, dominating the list of Britain\'s priciest coastal towns with its luxurious properties and breathtaking views.

Read more

Australian Renters Seek Larger Properties Despite Rising Costs

Discover why Australian renters are still drawn to bigger homes despite soaring rents. Find out how to navigate the challenging rental market and secure your dream property today. Act now!

Discover why Australian renters are still drawn to bigger homes despite soaring rents. Find out how to navigate the challenging rental market and secure your dream property today. Act now!

Read more

House Prices Drop 1.3% in Portugal's Major Cities

INE reports correction in house prices in Lisbon and Porto, along with 12 other municipalities, at the end of 2023.

INE reports correction in house prices in Lisbon and Porto, along with 12 other municipalities, at the end of 2023.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.