US commercial, multifamily mortgage debt rise by $40 billion in Q1: Report

By Ovunc Kutlu

ISTANBUL (AA) - The level of outstanding commercial and multifamily mortgage debt increased by $40.1 billion, or 0.9%, in the first quarter, according to a report.

Total outstanding commercial and multifamily mortgage debt rose to $4.7 trillion at the end of the first quarter, the Mortgage Bankers Association (MBA) said in a report Tuesday.

Multifamily mortgage debt alone increased $23.7 billion, or 1.1%, to $2.1 trillion in the January - March period, compared to the fourth quarter, it said.

"The amount of commercial mortgage debt outstanding increased in the first quarter of 2024, despite slow mortgage originations activity," said MBA’s head of commercial real estate research Jamie Woodwell. "Every major capital source increased its holdings of commercial mortgages, as fewer loans than usual were paid off through property sales or refinancings."

Commercial banks continue to hold the largest share of commercial and multifamily mortgages at $1.8 trillion, with 38%, while federal agency and government-sponsored enterprise portfolios and mortgage-backed securities are the second-largest holders of mortgages with 22% at $1.01 trillion, according to the report.

Life insurance companies hold $720 billion, or 15%, of mortgages, while commercial mortgage-backed securities, collateralized debt obligation and other asset-backed securities hold $604 billion with 13%, it added.