CRE Daily
Posts
Fannie, Freddie Set Multifamily Lending Record as Confidence Returns

Fannie, Freddie Set Multifamily Lending Record as Confidence Returns

With $176B in new lending capacity, Fannie and Freddie are set to anchor the next multifamily cycle.

Nina Dale
February 09, 2026

Together with

Good morning. After two years of disruption, agency lending is gaining momentum. Fannie Mae and Freddie Mac financed a record $152B in multifamily loans last year, just as a major refinancing wave comes into view.

Today’s issue is sponsored by Crexi—turning tedious property research into instant, deal-ready insights.

🎙️This Week on No Cap: We go deep into the hidden mechanics of commercial real estate debt with Trimont CEO Bill Sexton, who unpacks how loan servicing really works, where distress is quietly building, and why the next phase of the credit cycle is already underway.

CRE Trivia 🧠

According to U.S. Census data, which state overtook Texas as the top destination for net domestic migration?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,932.30

Pct Chg:
+1.97%

FTSE NAREIT

FNER

790.57

Pct Chg:
+1.51%

10Y Treasury

TNX

4.206%

Pct Chg:
-0.004

SOFR

30-DAY AVERAGE

3.66%

Pct Chg:
-0.00

*Data as of 2/6/2026 market close.

Agency Rebound

Fannie, Freddie Set Multifamily Lending Record as Confidence Returns

Government-backed lenders roared back in 2025, posting record multifamily loan volumes and setting the stage for even more activity as refinancing needs mount.

By the numbers: Fannie Mae originated $74B in multifamily loans in 2025, up 34% from 2024 and its highest total since 2020. Freddie Mac followed with $77.6B, a 17% YoY gain. Together, the agencies financed $151.6B, a 25% increase from the previous year.

Market stabilization: The surge suggests the multifamily sector has found firmer footing after two volatile years. According to CoStar, pricing risk is easing as new apartment supply slows and financing conditions improve. Still, elevated vacancy levels are expected to keep rent growth muted through mid-2026.

Caps are coming off: In a clear signal of confidence, FHFA raised multifamily loan purchase caps by $15B per agency for 2026. That puts Fannie and Freddie at $88B each, or $176B combined—a 20% increase over 2025 limits.

Refinancing wave ahead: The expanded capacity comes just in time. Multifamily loan maturities are projected to jump from $104.1B in 2025 to $162.1B in 2026, then climb again in 2027, driven by loans originated during the 2016–2017 cycle.

➥ THE TAKEAWAY

Funding the recovery: With refinancing pressure building and private capital still selective, Fannie Mae and Freddie Mac are poised to play an outsized role in 2026, making agency lending a central pillar of the multifamily market’s next phase of recovery.

TOGETHER WITH CREXI

How to Research 500 Properties in Minutes

Manual property lookups are killing your productivity.

Research shows CRE analysts spend the majority of their time on repetitive tasks; looking up addresses, tracking down owners, validating data.

What if you could process 500 properties as easily as 5?

Crexi's new AI-powered bulk research tool transforms address lists into enriched datasets with owner contacts and property details in minutes, not days.

Reclaim those hours for actual dealmaking.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

✍️ Editor’s Picks

Capital raising: Your investor portal matters more than you think. The most effective GPs pair human relationships with tools built around real fundraising workflows. Here’s what’s changing. (sponsored)
Outpacing everyone: Amazon is set to invest $200B in 2026—more than any tech peer—to scale its cloud and AI infrastructure through massive data center expansions.
Growth hubs: A handful of top U.S. markets continue to drive commercial real estate growth in 2026, buoyed by population gains, diversified economies, and sustained capital interest.
Migration math: Falling population growth is pressuring rents nationwide and eroding the Sun Belt’s once outsized advantage, signaling a more competitive leasing environment.
Distress spike: CRED iQ forecasts U.S. commercial real estate distress could rise to nearly 15% by the end of 2026 as refinancing pressure persists.
Cracks widen: Financial strain in CRE is no longer confined to offices, as distress expands into warehouses, apartments, and other formerly resilient sectors.

🏘️ MULTIFAMILY

Free rent: Sun Belt apartment owners are leaning harder on concessions to maintain occupancy, a trend highlighted in recent REIT earnings calls.
Fragile rebound: Multifamily fundamentals are poised to improve in 2026, though lingering affordability challenges and softer Class C demand could temper the rebound.
Risk repricing: New research points to a recalibration in CRE investment strategies as higher rates and refinancing risk reshape underwriting and deal structures.

🏭 Industrial

Empty boxes: Industrial vacancy is projected to rise again in 2026 as new supply continues to outpace tenant demand across major logistics markets.
Selective bets: A JV between SKB and RGA has acquired a Portland-area industrial campus, signaling selective confidence in well-located West Coast logistics assets.
Going vertical: Amazon is pursuing a rare multi-story industrial project in San Francisco, reflecting both land constraints and evolving urban logistics needs.

🏬 RETAIL

Prime survival: A Virginia luxury mall secured refinancing despite Saks Global’s bankruptcy, underscoring lender confidence in top-tier retail assets.
Daily needs: Regency Centers is advancing Ellis Village, a Sprouts-anchored retail project, betting on daily-needs shopping in dense Bay Area neighborhoods.
Buffet no more: Pizza Hut plans to close up to 250 U.S. locations as shifting consumer habits and cost pressures continue to reshape quick-service retail.
Capital rotation: A Blackstone-owned platform is seeking $331M in financing for a retail portfolio, highlighting renewed lender appetite for stabilized shopping centers.

🏢 OFFICE

Bottom fishing: Distressed office investment volume has hit a 10-year high as investors hunt for deeply discounted assets amid ongoing workplace uncertainty.
Tenant flight: San Diego’s medical office market is seeing a “flight to built-out” as tenants prioritize move-in-ready space over new construction.
Service growth: Plano-based tax services firm Ryan has expanded its property tax capabilities through the acquisition of Meritax Advisors.

🏨 HOSPITALITY

Refi relief: A St. Augustine hotel owner secured a $61M refinancing, demonstrating continued lender support for well-performing leisure-driven properties.
Forced sales: Rising debt stress helped boost California hotel transaction volume in 2025, creating opportunities for buyers to acquire assets at reset pricing.
D.C. refi: CarrAmerica locked in a $99M refinancing for a hotel within a Washington, D.C. mixed-use district, highlighting confidence in prime urban hospitality.

A MESSAGE FROM CREXI

Crexi Auction Alert: The Overlook at Port Saint Joe

Rare investment opportunity for discerning investors.

Newly built, 100% leased waterfront asset
25-year absolute NNN lease
$4.08M NOI with 3% annual rent escalations
Opportunity Zone designation
49 APNs with rare beach frontage
Starting bid: $8,000,000

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

📈 CHART OF THE DAY

Just 13.7% of U.S. single-family homes are renter-occupied, the lowest share on record, as renters increasingly concentrate in large multifamily buildings amid years of apartment construction and constrained single-family supply.

CRE Trivia (Answer)🧠

North Carolina gained over 84,000 more residents from other U.S. states than it lost, surpassing Texas, which had held the top spot for the previous two years.

Fannie, Freddie Set Multifamily Lending Record as Confidence Returns

With $176B in new lending capacity, Fannie and Freddie are set to anchor the next multifamily cycle.