The level of commercial and multifamily mortgage debt outstanding at the end of 2023 was $130 billion higher than at the end of 2022, a 2.8% uptick, according to data from the Mortgage Bankers Association (MBA). On a quarterly measurement, total mortgage debt outstanding rose by 0.9% ($41.8 billion) to $4.69 trillion in the fourth quarter of 2023.
Multifamily mortgage debt as a standalone consideration was up by $25 billion (1.2%) to $2.09 trillion during the fourth quarter, and was also up by $88.5 billion (4.4%) for the entire year.
By the end of 2023, commercial banks continue to hold the largest share (38%) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS were the second largest holders of commercial/multifamily mortgages at $1.0 trillion (21% of the total), followed by life insurance companies holding $733 billion (16%), and CMBS, CDO and other ABS issues holding $593 billion (13%).
Looking solely at multifamily mortgages, agency and GSE portfolios and MBS held the largest share of total debt outstanding at $1 trillion (48% of the total), followed by commercial banks with $612 billion (29%), life insurance companies with $235 billion (11%), state and local governments with $116 billion (6%), and CMBS, CDO and other ABS issues with $67 billion (3%).
“The amount of commercial mortgage debt outstanding grew in the final quarter of 2023 and for the year as a whole,” said Jamie Woodwell, MBA’s head of commercial real estate research. “However, the increase was among the slowest paces since the mid-2010s. Every major capital source increased its mortgage holdings during the year. Mortgage originations were down by roughly 50% in 2023 compared to 2022, but that meant that few loans were paying off, helping maintain portfolio sizes even in the face of lower inflows.”
;
