Commercial, multifamily mortgage debt outstanding up 1.5% in Q2

by Steve Randall01 Oct 2019

Mortgage debt outstanding in the commercial and multifamily sectors gained $51.9 billion (1.5%) in the second quarter.

The Mortgage Bankers Association’s latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report shows that total commercial/multifamily debt outstanding was $3.50 trillion at the end of the first half of 2019. Multifamily mortgage debt alone increased $24.4 billion (1.7%) to $1.5 trillion from the first quarter.

"Strong borrowing and lending, coupled with relatively low levels of loan maturities, are helping to boost the amount of commercial and multifamily mortgage debt outstanding," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "All four major capital sources increased their holdings during the quarter. With strong demand expected to continue, debt levels are likely to climb even more and end the year at a new high."

Commercial banks continue to hold the largest share (39%) of commercial/multifamily mortgages at $1.4 trillion; agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages (20%) at $703 billion; life insurance companies hold $539 billion (15%), and CMBS, CDO and other ABS issues hold $471 billion (13%).