Government-controlled finance giants posted strong multifamily loan production gains in 2025, signaling renewed investor confidence in commercial real estate as both agencies prepare to expand lending again in 2026.
Fannie Mae provided $74 billion in multifamily financing in 2025, a 34% increase from $55 billion in 2024, the company announced. The volume marks Fannie Mae's largest annual multifamily production since 2020.
Freddie Mac posted $77.6 billion in multifamily volume for 2025, up 17% from $66 billion in 2024, according to Kevin Palmer, executive vice president and head of multifamily.
Combined, the two agencies financed $151.6 billion in multifamily properties in 2025, compared with $121 billion in 2024.
The 25% year-over-year production increase suggest the multifamily market has stabilized following two years of market disruption.
Near-term pricing risk is receding as new supply has tapered and financing conditions have become more accommodative, according to CoStar analysis. Elevated vacancy rates should temper rent growth through mid-2026.
The two finance giants are set to expand their lending capacity this year.
Last November, the Federal Housing Finance Agency, which oversees the two enterprises, increased multifamily loan purchase caps for Fannie Mae and Freddie Mac by $15 billion each for 2026.
The Federal Housing Finance Agency set 2026 caps at $88 billion per company, up from $73 billion in 2025. The combined $176 billion ceiling marks a 20% increase over current limits.
This expanded capacity arrives as developers face a 2026-2027 refinancing wave on loans issued during the 2016-2017 cycle.
Multifamily loan due dates are set to surge. After reaching approximately $104.1 billion in 2025, the loan maturity calendar jumps 56% to roughly $162.1 billion in 2026 and edges higher to $167.7 billion in 2027, according to the advisory firm MMG Real Estate Advisors.
Fannie and Freddie support the housing market by purchasing loans and selling them to investors, allowing the lenders to use the cash proceeds to make more loans. Industry professionals view the higher caps as a sign that multifamily lending will rebound in 2026 after two years of subdued activity.