Chart of the Week
Every Friday, MBA's Chart of the Week provides commentary and analysis on a topic of interest for the industry. This comes from variety of data sources, including proprietary data from MBA's own surveys and studies, as well as from government agencies and other reliable sources of mortgage, housing, and economic data.
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Current Chart of the Week
Source: Mortgage Bankers Association Quarterly Mortgage Debt Outstanding Report
According to MBA’s Quarterly Mortgage Debt Outstanding Report, total commercial and multifamily mortgage debt outstanding increased by 3.7% year-over-year, rising from $4.62 trillion in Q4 2023 to $4.79 trillion in Q4 2024. This growth reflects continued investment in commercial real estate, with sector-specific variations in debt allocation.
Banks and thrifts remained the largest holders of commercial and multifamily mortgage debt, totaling $1.80 trillion (37.6% of the total), reflecting a modest 1.0% increase from the previous year. Agency and GSE portfolios and mortgage-backed securities saw a more significant rise of 6.2%, reaching $1.06 trillion, reinforcing their critical role in the market. Life insurance companies exhibited strong expansion, with holdings increasing 9.3% to $779.2 billion, demonstrating growing institutional interest in real estate debt. CMBS, CDO, and other ABS issues also grew, rising 5.5% to $625.5 billion, indicating resilience in structured finance markets. Meanwhile, some sectors saw a contraction. REITs experienced a 10.1% decline, falling to $85.8 billion, suggesting a shift in investment strategies or deleveraging. Private pension funds saw the largest percentage decrease, dropping 25.5%, highlighting potential portfolio adjustments and reallocations.
Multifamily mortgage debt grew at a faster rate than the overall market, increasing 5.4% year-over-year to $2.16 trillion in Q4 2024. Agency and GSE portfolios and MBS continued to dominate this sector, holding 49.3% of multifamily debt, with a 6.2% increase from the previous year. Life insurance companies saw the strongest growth in this category, expanding 12.5% to $254.5 billion, further underscoring institutional demand for multifamily financing.
The steady rise in commercial and multifamily mortgage debt highlights sustained investor confidence, with institutional lenders such as life insurance companies and GSEs continuing to expand their presence. At the same time, the decline in REIT and pension fund holdings suggests adjustments in investment strategies, possibly driven by changing economic conditions or evolving risk assessments. Overall, the data indicates an improving lending environment, with multifamily mortgage debt leading the way and agency-backed financing continuing to play a dominant role in the market.
- Reggie Booker (rbooker@mba.org); Mike Fratantoni (mfratantoni@mba.org)