Commercial and Multifamily Mortgage Debt Outstanding Increased in Q1 2024

The level of commercial/multifamily mortgage debt outstanding increased by $40.1 billion (0.9 percent) in the first quarter of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report, released last month.

Total commercial/multifamily mortgage debt outstanding rose to $4.70 trillion at the end of the first quarter. Multifamily mortgage debt alone increased $23.7 billion (1.1 percent) to $2.10 trillion from the fourth quarter of 2023.

Commercial banks continue to hold the largest share (38 percent) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (22 percent) at $1.01 trillion. Life insurance companies hold $720 billion (15 percent), and CMBS, CDO and other ABS issues hold $604 billion (13 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the “CMBS, CDO and other ABS” category.

Looking solely at multifamily mortgages in the first quarter of 2024, agency and GSE portfolios and MBS hold the largest share of total multifamily debt outstanding at $1.01 billion (48 percent), followed by banks and thrifts with $620 billion (30 percent), life insurance companies with $230 billion (11 percent), state and local government with $117 billion (6 percent), and CMBS, CDO and other ABS issues holding $67 billion (3 percent). 

Changes in commercial/multifamily debt outstanding

In the first quarter, bank and thrifts saw the largest gains in dollar terms in their holdings of commercial/multifamily mortgage debt—an increase of $12.8 billion (0.7 percent). CMBS, CDO and other ABS issues increased their holdings by $11.0 billion (1.9 percent), agency and GSE portfolios and MBS increased their holdings by $10.2 billion (1.0 percent), and life insurance companies increased their holdings by $7.0 billion (1.0 percent).

In percentage terms, CMBS, CDO and other ABS issues saw the largest increase—1.9 percent—in their holdings of commercial/multifamily mortgages. Conversely, state and local government retirement funds saw their holdings decrease 8.3 percent.

—Posted on July 29, 2024