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CRE Mortgage Debt Grows Modestly in Q2
The level of commercial/multifamily mortgage debt outstanding increased by $31.4 billion, or 0.7%, to $4.69 trillion in the second quarter of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Multifamily mortgage debt alone increased $19.4 billion (0.9%) to $2.09 trillion from Q1.
“Commercial mortgage debt outstanding grew at a modest pace in the second quarter,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Every major capital source increased its holdings of mortgages backed by income-producing properties, but the growth was mixed, with life insurance companies increasing their holdings by 1.8% and banks increasing their holdings by 0.2%.” That said, banks hold the largest share of commercial/multifamily mortgages at 38%.
Woodwell added, “With fewer loans paying off, CRE mortgage balances have continued to grow in recent quarters despite a marked fall-off in the volume of loans being made. We anticipate that long-term interest rates, which are significantly lower than a year ago, will help increase origination activity in coming quarters – boosting both new loans coming onto the books and the payoff of existing ones.”
- ◦Financing
