Freddie Mac Midyear Multifamily Outlook: Despite Uncertainty, Solid Performance Expected in 2022

Freddie Mac expects multifamily growth will moderate through the rest of the year after holding strong in the first half of the year, Multifamily Dive reports. 

The government-sponsored mortgage lender published their Midyear Multifamily Outlook this month, predicting multifamily 2022 origination volume will contract to between $440 billion and $450 billion, down 8%-10% from 2021. 

Inflation and volatile Treasury rates are expected to be headwinds to growth. "The likelihood of a recession has risen from the first half of the year to the second, and rising interest rates have cut into multifamily volume as borrowers and investors avoid volatile environments," Multifamily Dive writes. 

However, Freddie Mac analysts say fundamentals will ultimately remain strong. "Despite increased uncertainty, the multifamily industry is positioned well, and we forecast solid performance for the year," the report reads. 

Read the full Freddie Mac report at FreddieMac.com and Multifamily Dive's analysis at MultifamilyDive.com.