Fannie Mae and Freddie Mac financed more than 42% of CRE transactions last year and are on pace to represent 40% of the market this year despite a decrease in total volume since 2021, according to Berkadia's quarterly market update.

Fannie Mae issuance is down 23% over the past year, with year-to-date issuance figures totaling about $32.5 billion. This could leave Fannie Mae $10 billion shy of last year's production and $27 billion shy of its cap, according to the report. Freddie Mac's pace is slightly ahead of last year through the first half of 2024 but is also on pace to finish well short of both last year's production and its $70 billion cap.

Adjustable-rate mortgages have become less popular in the recent rate environment, and Fannie Mae has not delivered any ARMs yet this year, the report said. Agency CMBS volume has shifted to shorter terms, typically five and seven years, as borrowers anticipate downward treasury rate pressure in the medium and long term.