Commercial and multifamily mortgage debt outstanding decreased for the first time in five quarters during the first quarter of this year, according to the Mortgage Bankers Association (MBA).
The 0.2% decline, which translated to $4.9 billion, left the nation’s total commercial and multifamily mortgage debt at $2.41 trillion at the end of the quarter.
“Banks and thrifts, Fannie Mae, Freddie Mac and FHA increased their commercial and multifamily holdings, but the balance of loans in commercial mortgage-backed securities resumed its decline,” said Jamie Woodwell, VP of commercial real estate research for the MBA.
The greatest decline in commercial and multifamily debt took place among commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO), and asset-backed securities (ABS). They shed $4.8 billion in debt over the first quarter of this year.
The next-greatest decline took place among private pension funds, which decreased their commercial and multifamily debt by 17% over the quarter.