Volatility In Capital Markets Tempers Agency Seniors Housing Loan Volume
At first glance, 2022 looks like a partial return to pre-pandemic form for Fannie Mae and Freddie Mac's deal volume within the seniors housing sector. After major downturns in 2020 and 2021, Fannie Mae's volume rose 26 percent from $800 million in 2021 to $1 billion in 2022.
Freddie Mac's volume rose 29 percent from $2.1 billion to $2.7 billion over that same span. While these numbers still pale in comparison to 2019 — when Freddie closed $3.8 billion and Fannie closed $3.1 billion — it still signaled that the government-sponsored enterprises (GSEs) might be on the rise.
Unfortunately, that's not the whole story. Strong results in the first half of 2022 were tempered by rising interest rates in response to out of control inflation.
"Going into 2022, I think everyone was hoping for stronger lending activity," says Christopher Honn, managing director at NewPoint Real Estate Capital. "But Fannie Mae and Freddie Mac ended the year well below their historical pre-pandemic volumes."
(This is an excerpt from the article' Fannie, Freddie Stall After Restart' written by Jeff Shaw that ran in the April issue of Senior Housing Business.)
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