It releases latest commercial and multifamily mortgage debt outstanding report
Total commercial and multifamily mortgage debt outstanding grew to $4.60 trillion in the second quarter, according to the Mortgage Bankers Association.
MBA’s report showed that overall mortgage debt outstanding rose by $37.7 billion (0.8%), with multifamily mortgage debt contributing $26.4 billion of the total figure. Multifamily debt was up 1.3% to $2.03 trillion from the previous quarter.
Jamie Woodwell, head of commercial real estate research at MBA, said the increases were driven by gains in the mortgage holdings of the largest investor groups (life companies, government-sponsored enterprises (GSEs), banks and thrifts, and other depositories).
At the end of Q2, commercial banks remained the biggest holder of commercial/multifamily mortgages at $1.8 trillion (38%). Agency and GSE portfolios and MBS followed with $971 billion (21%), life insurance companies with $692 billion (15%), and CMBS, CDO and other ABS issues with $593 billion (13%).
“Commercial and multifamily mortgage originations are down by more than half from a year ago, and this lack of new demand means fewer loans are being paid off. This, in turn, is helping to maintain, and in some cases even grow, the amount of credit outstanding,” Woodwell said.
MBA reported last month that mortgage originations of loans backed by commercial and multifamily properties plunged by more than half (53%) annually amid a volatile interest-rate environment. The trade group said it expects commercial and multifamily origination volumes to decline $504 billion this year.
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