Debt outstanding in 2022 was the second largest in 16 years
The commercial and multifamily mortgage market remained strong in 2022, ending the year with a 7.7% annual increase, according to the Mortgage Bankers Association.
The total mortgage debt outstanding of commercial and multifamily loans rose $77.9 billion in the fourth quarter of 2022 and was $324 billion higher than at the end of 2021. Multifamily mortgage debt edged up $35.6 billion (1.8%) to $1.96 trillion in Q4 and $148.2 billion (8.2%) for the entire year.
"The rate of growth was the second largest since 2007 – just below 2021's pace," said Jamie Woodwell, head of commercial real estate research at MBA. "Additionally, growth in multifamily mortgage balances accounted for almost half of the annual increase."
Woodwell noted that depositories led the growth among capital sources, increasing their holdings of commercial and multifamily mortgages by 12%.
Commercial banks held 39% of commercial/multifamily mortgages at $1.7 trillion – the largest share. Agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages at $953 billion (21% of the total), followed by life insurance companies at $666 billion (15%), and CMBS, CDO and other ABS issues at $603 billion (13%).
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