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CRE Mortgage Debt Ticks Upward in Q3 2024
The level of commercial/multifamily mortgage debt outstanding increased by $47.7 billion (1.0%) in the third quarter of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Total commercial/multifamily mortgage debt outstanding rose to $4.75 trillion at the end of Q3. Multifamily mortgage debt alone increased $29.8 billion to $2.12 trillion, up 1.4% from Q2.
”Every major capital source for commercial mortgage debt increased its holdings of mortgages during the third quarter of 2024,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Life insurance companies led the way, accounting for 44% of the quarterly increase and boosting their commercial mortgage holdings by nearly 3%.
”That increase contrasts with banks, which increased their balances of CRE mortgages during the quarter by only 0.3%,” he continued. ”For the ninth quarter in a row, aggregate balances backed by multifamily properties increased more than those backed by other property types.”
Commercial banks continue to hold the largest share (38%) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest (22%) at $1.03 trillion. Life insurance companies hold $757 billion (16%). CMBS, CDO and other ABS issues hold $619 billion (13%).
- ◦Financing
