Freddie Mac expects multifamily contraction through the end of 2022
Freddie Mac expects multifamily contraction through the end of 2022
Abstract
Inflation and volatile Treasury rates are among the major headwinds pushing against multifamily growth, according to the Freddie Mac Multifamily Midyear Outlook. The likelihood of a recession has risen from the first half of the year to the second half of 2022, and rising interest rates have cut into multifamily volume as borrowers and investors avoid volatile environments. Despite these expectations, Freddie Mac maintains that fundamentals will remain strong. Gross incomes are expected to rise. Florida and Southwest markets expected to outperform the country as a whole. The mortgage lender is expected to improve in the second-half of this year.