- Fannie Mae and Freddie Mac financed a combined $151.6B in multifamily loans in 2025, a 25% increase year-over-year.
- Loan purchase caps for both agencies will rise to $88B each in 2026, up from $73B per agency in 2025.
- Elevated multifamily loan maturities are anticipated in 2026 and 2027, reaching over $160B annually.
- Stronger multifamily lending signals stabilizing market and greater access to capital for developers.
GSEs Drive Multifamily Lending Growth
CoStar reports that government-backed finance leaders Fannie Mae and Freddie Mac posted a sharp rise in multifamily loan activity for 2025. Fannie Mae reported $74B in multifamily loans, up 34% from the previous year, while Freddie Mac reached $77.6B, a 17% gain. Together, their $151.6B in originations represents the highest combined figure since 2020, reflecting broad-based industry recovery.
Loan Cap Expansion Signals More Support
The Federal Housing Finance Agency raised multifamily loan purchase caps last November. In 2026, limits will rise to $88B each for Fannie Mae and Freddie Mac, up from $73B in 2025. This increase brings the combined cap to $176B. The move reflects broader efforts to strengthen GSE lending capacity and follows a $30B boost in multifamily finance allocations. The higher ceiling offers more lending capacity as the market prepares for a surge in loan maturities and refinancing demand.
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Refinancing Wave Looms Ahead
Multifamily loan maturities will climb sharply in 2026 and 2027. Scheduled maturities will reach $162.1B and $167.7B, respectively, according to MMG Real Estate Advisors. This wave of refinancing comes as lending conditions improve and market stability returns. Together, these factors should support continued growth in multifamily lending by the GSEs.
Market Outlook
Multifamily loans continue to attract substantial investor interest, aided by GSE capacity increases. While rent growth may remain muted due to ongoing supply and vacancy trends, higher government-backed lending limits are expected to bolster market liquidity in 2026.
