MBA shares data from the end of 2023
New data from the Mortgage Bankers Association (MBA) has revealed that commercial and multifamily mortgage debt increased in the fourth quarter of 2023, as it made a $130 billion jump from the end of 2022.
The new report from MBA found that the total mortgage debt outstanding climbed by 0.9% to reach $4.69 trillion by the end of the quarter.
Specifically, multifamily mortgage debt posted growth of $25 billion (1.2%) to $2.09 trillion within the quarter, as well as a $88.5 billion (4.4%) increase across the year.
Jamie Woodwell, who heads MBA’s commercial real estate research, said the uptick in commercial mortgage debt outstanding seen in the fourth quarter and throughout 2023 was “among the slowest paces since the mid-2010s.”
“Every major capital source increased its mortgage holdings during the year,” he added. “Mortgage originations were down by roughly 50% in 2023 compared to 2022, but that meant that few loans were paying off, helping maintain portfolio sizes even in the face of lower inflows.”
MBA’s data on commercial and multifamily mortgage debt
Commercial banks held the largest share of commercial/multifamily mortgages, according to the MBA report, accounting for $1.8 trillion, or 38%, of the total.
Agency and GSE portfolios and MBS came in second, accounting for $1 trillion, or 21%, of the total share. Life insurance companies held $733 billion (16%), while CMBS, CDO, and other ABS issues had $593 billion (13%).
Focusing on multifamily mortgages, agency and GSE portfolios and MBS commanded the largest share with $1.0 trillion (48% of the total), followed by commercial banks ($612 billion, 29%), life insurance companies ($235 billion, 11%), state and local governments ($116 billion, 6%), and CMBS, CDO, and other ABS issues ($67 billion, 3%).
The fourth quarter of 2023 also saw agency and GSE portfolios and MBS experiencing the most significant dollar increase in holdings of commercial/multifamily mortgage debt, with a $15.5 billion rise (1.6%). Commercial banks followed with a $14.8 billion increase (0.8%), and life insurance companies with a $9.9 billion rise (1.4%).
As for the fourth quarter rise in multifamily mortgage debt outstanding, agency and GSE portfolios and MBS led the increase with $15.5 billion (1.6%).
Meanwhile, over the course of the year, agency and GSE portfolios and MBS recorded the highest dollar increase in their holdings of commercial/multifamily mortgage debt at $49 billion (5.1%).
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