US Commercial and Multifamily Mortgage Debt Outstanding Grew 7.7% in 2022Q4

The Mortgage Bankers Association on Tuesday (3-21-23) released its latest quarterly Commercial/Multifamily Mortgage Debt Outstanding report. The reports reveals that the level of commercial/multifamily mortgage debt outstanding at the end of 2022 was $324 billion, or 7.7%, higher than at the end of 2021.

The MBA found that total mortgage debt outstanding rose by 1.7% to $77.9 billion in 2022Q4. Multifamily mortgage debt increased by $35.6 billion, or 1.8%, to $1.96 trillion during Q4 and by $148.2 billion, or 1.8%, for all of 2022.

Commercial banks continue to hold the largest share—approximately 39% of commercial/multifamily mortgages at $1.7 trillion. Agency and GSE portfolio and MBS are the second largest holders of commercial/multifamily mortgages at $953 billion, or 21%. Life insurance companies hold $666 billion, or 15%, and CMBS and CDO and other ABS issues hold $603 billion, or 13%.

Adding background to the report, MBA’s Head of Commercial Real Estate Research Jamie Woodwell said:

“Commercial and multifamily mortgage debt outstanding grew at another strong clip in 2022. The rate of growth was the second largest sine 2007—just below 2021’s pace. Among capital sources, depositories led the growth, increasing their holding of commercial and multifamily mortgages by 12 percent. Additionally, growth in multifamily mortgage balanced accounted for almost half of the annual increase”.