Investors continue to grow their holdings
Total commercial/multifamily mortgage debt outstanding grew in the second quarter of 2018.
The Mortgage Bankers Association says that all four major investor groups increased their holdings of these real estate assets, adding $52.3 billion to bring the total debt outstanding to $3.27 trillion trillion, up 1.6% from the first quarter. Multifamily accounted for $20 billion of the increased debt, also increasing 1.6%.
"The balance of mortgage debt on commercial and multifamily properties grew faster during the first half of 2018 than during any other first half since 2007," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The four major investor groups all increased their holdings, and multifamily mortgage debt outstanding topped $1.3 trillion for the first time. Strong property fundamentals and values, coupled with still-low mortgage rates and strong loan performance, are all supporting the market."
Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $1.3 trillion, or 40% of the total.
Looking solely at multifamily mortgages, agency and GSE portfolios and MBS hold the largest share, with $631 billion, or 49% percent of the total multifamily debt outstanding.
