CRE Mortgage Debt Outstanding Reaches New Peak
With commercial banks leading the way, the level of commercial/multifamily mortgage debt outstanding rose to $4.25 trillion in the first quarter, a new record, the Mortgage Bankers Association (MBA) said Thursday. Multifamily mortgage debt alone increased $37.4 billion (2.1%) to $1.8 trillion from Q4 2021.
“Driven by record-high originations for a first quarter, the amount of commercial and multifamily mortgage debt outstanding climbed to a new high at the end of March 2022,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “Depositories and life insurance companies were behind the majority of the growth, and multifamily mortgage debt continued to rise at a solid level.”
He added, “The recent run-up in interest rates and drop in broader equity values will without a doubt affect commercial and multifamily markets in the coming quarters, but the relatively strong market fundamentals for most property classes should serve as a stabilizing force.”
- ◦Financing
