Commercial/Multifamily Mortgage Debt Outstanding

All four major capital sources increased their holdings during the second quarter.

$ in billions

Sources: Mortgage Bankers Association, Federal Reserve Board of Governors, Wells Fargo Securities LLC, Intex Solutions Inc. and FDIC

The level of commercial/multifamily mortgage debt outstanding rose by $51.9 billion (1.5 percent) in the second quarter of 2019, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

At the end of the first half of 2019, total commercial/multifamily debt outstanding was at $3.5 trillion. Multifamily mortgage debt alone increased $24.4 billion (1.7 percent) 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. 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 percent) of commercial/multifamily mortgages at $1.4 trillion. Agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages (20 percent) at $703 billion. Life insurance companies hold $539 billion (15 percent), and CMBS, CDO and other ABS issues hold $471 billion (13 percent).

Jamie Woodwell is the Mortgage Bankers Association’s vice president of commercial real estate research.