Commercial, multifamily mortgage debt spikes to $4.45 trillion

Total commercial and multifamily mortgage debt outstanding rose by $70 billion in the third quarter, according to data from the Mortgage Bankers Association.

MBA’s quarterly report showed a 1.6% increase in commercial/multifamily mortgage debt outstanding, hitting $4.45 trillion at the end of the third quarter. Multifamily mortgage debt accounted for $1.93 trillion of the total figure, up by 1.9% or $36.1 billion from the previous quarter.

“The amount of commercial and multifamily mortgage debt outstanding increased during the third quarter, driven almost entirely by a large increase in the portfolio holdings of banks and other depositories,” said Jamie Woodwell, head of commercial real estate research at MBA. “The increase in bank holdings was the largest quarterly increase of any individual capital source in the history of MBA’s series. For most other capital sources, their holdings of commercial and multifamily mortgages grew at a slower rate than during the second quarter of 2022.”