U.S. commercial and multifamily mortgage debt outstanding rose by $45.4 billion to $3.46 trillion in the first quarter of 2019, a 1.3 percent increase from the fourth quarter of 2018, according to the Mortgage Bankers Association‘s quarterly report.
The four major investor groups analyzed in MBA’s report are: bank and thrift; federal agency and government sponsored enterprise (GSE) portfolios and mortgage backed securities (MBS); life insurance companies; and commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues.
Total Commercial and Multifamily Mortgage Debt Outstanding, by Investor Group, Q1 2019;
- Banks and thrifts (39 percent)-$1.35 trillion,
- Agency,GSE portfolios and MBS (20 percent)- $687 billion,
- Life insurance companies (15 percent)- $532 billion,
- CMBS, CDO and other ABS issues (14 percent)- $466 billion,
- Others (12 percent)- $425 billion.
The total commercial and multifamily mortgage debt outstanding, by Q1 2019, reached $3.46 trillion.
“Mortgage debt backed by commercial and multifamily income-producing properties continues to grow at a strong pace, with three of the four major capital sources – banks, life companies, and the GSEs and FHA – growing their holdings by more than one percent during the first quarter of 2019,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.
“REITs, finance companies and nonfinancial corporate businesses also showed strong appetites last quarter, with each growing their holdings by more than $1 billion. The depth and breadth of growth among investors signals the interest in the sector,” he added.
Multifamily mortgage debt alone increased $17.9 billion to $1.4 trillion from the fourth quarter of 2018.
Total Multifamily Mortgage Debt Outstanding, by Sector, Q1 2019 ;
- Agency,GSE portfolios and MBS (50 percent)- $687 billion,
- Banks and thrifts (32 percent)-$436 billion,
- State and local governments (6 percent)- $84 billion,
- Life insurance companies (6 percent)- $84 billion,
- CMBS, CDO and other ABS issues (3 percent)- $43 billion,
- Nonfarm non-corporate businesses (1 percent) – $16 billion.