Multifamily Maturity Risk
As the market adjusts to a higher-for-longer interest rate environment, much of the industry’s attention is on the potential maturity risk of multifamily debt coming due over the next few years. Higher interest rates combined with slowing multifamily fundamentals may impact the ability of loans to refinance in the near term, especially among those with shorter durations or underwritten to narrow margins.
In this paper, we examine the maturity risk exposure across the multifamily industry and Freddie Mac’s portfolio to help determine how much of an impact market conditions may have on loan refinances.