The level of commercial/multifamily mortgage debt outstanding increased by $53.4 billion (1.1%) during the third quarter of 2025, according to data from the Mortgage Bankers Association (MBA). Total commercial/multifamily mortgage debt outstanding rose to $4.93 trillion at the end of the third quarter from the second quarter.
Commercial banks held the largest share (37%) of commercial/multifamily mortgages at $1.8 trillion. Agency, government-sponsored enterprise portfolios and mortgage-backed securities were the second-largest holders of commercial/multifamily mortgages (23%) at $1.11 trillion. Life insurance companies held $783 billion (16%), while commercial mortgage-backed securities, collateralized debt obligation and other asset-backed securities issues held $642 billion (13%).
“Commercial and multifamily mortgage debt continued to grow during last year’s third quarter, driven by strong increases in multifamily lending,” said Reggie Booker, MBA’s associate vice president of commercial research, adding, “Multifamily debt grew to $2.24 trillion, up 1.8% from the second quarter and up 5.9% from the third quarter of 2024, and now accounts for 22.5% of total commercial debt.”
