US Commercial and Multifamily Mortgage Debt Outstanding Rises in Q3

On Tuesday, the Mortgage Bankers Association (MBA) reported that commercial and multifamily mortgage debt outstanding increased by $53.4 billion, or 1.1%, in 2025Q3.

Total commercial and multifamily mortgage debt outstanding rose to $4.93 trillion at the end of Q3. Multifamily mortgage debt increased 1.8%, or $40.3 billion, from Q2 to $2.24 trillion.

Commercial banks remained the largest holders, accounting for 37% of outstanding balances, or about $1.8 trillion. Agency and GSE portfolios and MBS were the second-largest holders at 23%, or $1.11 trillion. Life insurance companies held $783 billion, or 16%, while CMBS, CDO, and other ABS issues accounted for $642 billion, or 13%.

In remarks accompanying the release, MBA Associate Vice President of Commercial Research Reggie Booker said:

“Commercial and multifamily mortgage debt continued to grow during last year’s third quarter, driven by strong increases in multifamily lending. While economic and market uncertainty persists, agency and GSE portfolios once again led the market, with banks and life insurance companies also posting solid gains. Total commercial real estate debt increased to $4.93 trillion in the third quarter, up 1.1% from the second quarter and up 4.0% from the third quarter of 2024. Multifamily debt grew to $2.24 trillion, up 1.8% from the second quarter and up 5.9% from the third quarter of 2024 and now accounts for 22.5% of total commercial debt.”