Increase in Multifamily Mortgage Debt – Multifamily Real Estate News
in billions of dollars
The last months of summer 2021 have been very active for multi-family borrowing and lending.
The level of outstanding commercial/multifamily mortgage debt increased by $64.8 billion (1.6%) in the third quarter of 2021, according to the latest outstanding commercial/multifamily mortgage debt from the Mortgage Bankers Association. (MBA). quarterly report. Multifamily mortgage debt alone rose $26.6 billion (1.5%) to $1.8 trillion from the second quarter of 2021.
Every major investor group increased their holdings of commercial and multi-family mortgages during the third quarter as many property types healed significantly from the closures at the start of the COVID-19 pandemic in early 2020.
Looking at multifamily mortgages alone, agency and GSE portfolios and MBS hold the largest share of total multifamily debt outstanding at $885 billion (50%), followed by banks and savings with $496 billion (28%), life insurance companies with $177 billion (10 percent), state and local governments with $106 billion (6 percent), and CMBS, CDOs and other ABS issues holding $55 billion (3 percent). Non-farm and unincorporated businesses hold $20 billion (1%).
REITs saw the largest percentage increase in their holdings of multifamily mortgages, up $649 million (9.5%). Private pension funds saw the largest decline in their holdings of multifamily mortgage debt, down $65 million (14.3%).
Strong interest from borrowers and lenders should continue to drive commercial and multifamily mortgage debt higher in 2022.
Jamie Woodwell is the Mortgage Bankers Association’s Vice President of Commercial Real Estate Research.