Anyone in multifamily who hoped that conditions would turn and that 2023 would be a replay of previous years was just hit in the face with a bucket of cold water tossed by the Federal Housing Finance Agency.
The FHFA announced the multifamily loan purchase caps for both Fannie Mae and Freddie Mac: $75 billion for each, $150 billion total. That's down from the $78 billion each had in 2022 because the FHFA expects multifamily family originations to contract this year.
Given uncertainty about a potential recession and Federal Reserve policy, questions of whether markets will support continued rent increases to offset higher property prices and continued pressure on cap rates, inflation, and higher financing costs, the take isn't surprising.
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