The total volume of commercial/multifamily mortgage debt outstanding rose to $4.63 trillion at the end of the third quarter, according to new data from the Mortgage Bankers Association (MBA). This marked an 0.8% increase, or $37.1 billion, from the second quarter.
Multifamily mortgage debt alone increased by 1.3%, or $26.8 billion, to $2.05 trillion from the second quarter.
Commercial banks continue to hold the largest share (38%) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (21%) at $986 billion, followed by life insurance companies with $702 billion (15%), and CMBS, CDO and other ABS issues holding $593 billion (13%).
“The level of commercial mortgage debt outstanding has continued to increase despite a continued pullback in borrowing,” said Jamie Woodwell, MBA’s head of commercial real estate research. “A decline in sales transaction and refinance volumes has meant less new debt being extended, but it also means that fewer loans are paying off than in many earlier periods. The result is that debt levels continue to rise, but at a pace that is roughly half of what was seen last year.”
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