US commercial, multifamily mortgage debt rises by $31.4B in Q2

By Ovunc Kutlu

ISTANBUL (AA) - The level of outstanding commercial and multifamily mortgage debt in the US increased by $31.4 billion, or 0.7%, in the second quarter, according to a report released Thursday.

Total outstanding commercial and multifamily mortgage debt rose to $4.69 trillion at the end of the second quarter, the Mortgage Bankers Association (MBA) said in the report.

Multifamily mortgage debt alone increased $19.4 billion, or 0.9%, to $2.09 trillion in the April-June period, compared to the first quarter, it said.

"Commercial mortgage debt outstanding grew at a modest pace in the second quarter," said MBA’s head of commercial real estate research Jamie Woodwell.

"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 percent and banks increasing their holdings by 0.2 percent," he added.

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 $1.02 trillion, according to the report.

Life insurance companies hold $735 billion, or 16%, of mortgages, while commercial mortgage-backed securities, collateralized debt obligation and other asset-backed securities hold $609 billion with 13%, it added.