Commercial and multifamily lending markets are poised for strong growth in 2021. According to a new report from the Mortgage Bankers Association, mortgage maturity volumes are likely to increase 36% this year, while commercial and multifamily lending are forecasted to increase 11%.

Commercial and multifamily mortgage bankers are predicted to close $486 billion this year—an increase from the $440 billion in loan volumes closed in 2020—with multifamily lending driving the growth. The sector alone is set to increase 7% this year, up $323 billion in 2021. By comparison, multifamily lending activity totaled $302 billion in 2020.

This is likely the beginning of recovery for the lending markets after a paltry performance in 2020 due to the pandemic. "The steep declines in mortgage borrowing and lending seen in 2020 should partially reverse in 2021. The economic rebound MBA anticipates in the second half of the year should bring greater stability to the markets, but with continued differentiation by property type," Jamie Woodwell, MBA's VP for commercial real estate research, said in the firm's forecast report.