Multifamily/Commercial Mortgage Debt Increases $60.7 Billion in Q2 2021

According to the latest Mortgage Bankers Association’s (MBA) Commercial/Multifamily Mortgage Debt Outstanding quarterly report, the level of commercial/multifamily debt outstanding increased by 1.5% or $60.7 billion in Q2 of 2021. Total commercial/multifamily debt outstanding rose to $3.98 trillion at the end of Q2. Multifamily mortgage debt alone increased $23.8 billion (1.4 percent) to $1.7 trillion from the Q1 of 2021.

The four largest investor groups are: banks and thrifts; federal agency and government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS); life insurance companies; and commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO), and other assets. Commercial banks continue to hold the largest share (38%) of commercial/multifamily mortgages at $1.5 trillion.

In a statement prepared for the release of the Q2 report, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research said, “Strong demand from all of the major capital sources led to another increase in the amount of commercial and multifamily mortgage debt outstanding. In line with the strength of apartment fundamentals and values, there was a solid increase in the amount of multifamily mortgage debt outstanding. Additionally, the increase in mortgage debt on other, non-multifamily commercial properties was the largest since 2007 — a sign of renewed interest in other property types.”