The level of commercial and multifamily mortgage debt outstanding increased by 0.9%, or $40.1 billion, in the first quarter, according to the Mortgage Bankers Association (MBA). This brings the total commercial and multifamily mortgage debt outstanding to $4.7 trillion at the end of the first quarter.
According to the MBA’s quarterly report, in the first quarter, multifamily debt increased 1.1%, or $23.7 billion, from the fourth quarter to $2.1 trillion.
“The amount of commercial mortgage debt outstanding increased in the first quarter of 2024, despite slow mortgage originations activity,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Every major capital source increased its holdings of commercial mortgages, as fewer loans than usual were paid off through property sales or refinancings.”
Banks and thrifts continue to hold the largest share of commercial and multifamily mortgages, 38%, at $1.8 trillion. Agency and government-sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS) follow with 22% of the share at $1.01 trillion. Life insurance companies hold 15% of the share at $720 billion. In addition, commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO), and other asset-backed securities (ABS) issues hold 13% of the share at $604 billion.
For multifamily alone, agency and GSE portfolios and MBS hold the largest share of outstanding debt, 48%, at $1.01 billion. Following are banks and thrifts with 30% of the share at $620 billion; life insurance companies with 11% of the share at $230 billion; state and local government with 6% of the share at $117 billion; and CMBS, CDO, and other ABS issues with 3% of the share at $67 billion.
In the recent first quarter, agency and GSE portfolios and MBS issues saw the largest gain, $10.2 billion, in their holdings of multifamily mortgage debt. Banks and thrifts increased their holdings by $9.1 billion, and life insurance companies increased by $3.8 billion.
In addition, according to MBA, nonfinancial corporate business saw the largest percentage increase in their holdings of multifamily mortgage debt, up 3.2%, and real-estate investment trusts saw the largest decline in their holdings at 9.7%.
