According to the Mortgage Bankers Association’s latest quarterly report on Commercial/Multifamily Mortgage Debt Outstanding, the total amount of mortgage debt outstanding at the end of 2023 rose by $130 billion or 2.8% compared to year-end 2022. This brings the new total to $4.69 trillion, with multifamily properties accounting for nearly two-thirds of this figure.
MBA’s head of commercial real estate research, Jamie Woodwell, noted that while there was growth in commercial mortgage debt outstanding in both Q4 and throughout 2023 as a whole, it was one of the slowest paces seen since mid-2010s.
Woodwell also highlighted that all major capital sources saw an increase in their mortgage holdings during this period and despite a decrease in originations by approximately half from 2022 to 2023, few loans were paying off which helped maintain portfolio sizes even with lower inflows.
Outstanding CRE Debt Reaches $4.7 Trillion at Year-End
At present time (year-end), CRE debt has reached an impressive milestone: it now stands at over $4/69 trillion! This is according to MBA’s latest quarterly report on Commercial/Multifamily Mortgage Debt Outstanding.
The largest share (38%) is held by commercial banks who have amassed a staggering sum totaling up-to-$1/8-trillion dollars! Second place goes out too Agency & GSE portfolios plus MBS holders who hold about twenty-one percent ($1/0-trillion). Life insurance companies are third place-holders having accumulated seven hundred thirty-three-billion-dollars ($733-billion) worth-of-CRE-debt; they account-for sixteen-percent (16%). CMBS/CDO-and-other ABS issues round-out fourth-place-holders holding five hundred ninety-three billion dollars’ worth-of-commercial/multi-family-mortgages; they account-for thirteen-percent(13%).
Commercial banks continue to hold the largest share (38%) of commercial/multifamily mortgages at $1.8 trillion, followed by Agency and GSE portfolios and MBS holders with $1.0 trillion (21%). Life insurance companies hold $733 billion (16%), while CMBS, CDO, and other ABS issues account for 13% with a total of $593 billion in holdings.
In summary, the level of CRE debt outstanding has reached an impressive milestone at year-end 2023 with a total amount exceeding $4.7 trillion. This growth was seen across all major capital sources despite a decrease in originations from the previous year.
