U.S. Commercial, Multifamily Debt Rises Most Since 2008

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The level of outstanding commercial and multifamily mortgage debt increased by $25.2 billion during the third quarter, the largest increase since 2008, according to the Mortgage Bankers Association. 

The total outstanding commercial and multifamily debt stood at $2.47 trillion in the third quarter. Multifamily mortgage debt alone increased to $887 billion, an increase of $10.8 billion from the second quarter, the MBA reports. 

"The third quarter also marked the largest increase in the outstanding balance of loans in commercial mortgage backed securities since 2007," Jamie Woodwell, MBA's vice president of Commercial Real Estate Research, said in the report. "There were increases in the holdings of every major investor group."

Commercial banks had the largest share of commercial/multifamily mortgages, $870 billion, representing 35 percent of the total.

During the third quarter, banks and thrifts recorded the largest increase in dollar terms in their holdings of commercial/multifamily debt, increasing $14.5 billion, or 1.7 percent, according to the MBA. 

Focusing only on multifamily mortgages, agency and GSE portfolios and MBS hold the largest share, at $391 billion, representing 44 percent of the total multifamily debt outstanding.