In the first quarter of 2024, the Mortgage Bankers Association (MBA) reported a $40.1 billion increase in commercial and multifamily mortgage debt outstanding. This represents a growth of 0.9% from the previous quarter, bringing total outstanding debt to $4.70 trillion.
The largest contributor to this increase was multifamily mortgage debt, which rose by $23.7 billion (1.1%) to reach $2.10 trillion by the end of Q1 2024.
Despite slow originations activity in the mortgage market, all major capital sources saw an uptick in their holdings of commercial mortgages during this period as fewer loans were paid off through property sales or refinancings.
Commercial banks remain at the forefront with a share of 38% ($1.8 trillion) followed by agency and GSE portfolios and MBS at 22% ($1.o01 trillion). Life insurance companies hold approximately $720 billion (15%), while CMBS, CDOs and other ABS issues hold about$604 billion (13%).
This significant rise in outstanding CRE mortgage debt is indicative of continued confidence in this sector among investors despite current market conditions.
