Commercial, Multifamily Mortgage Debt Climbs To $4.81T
Commercial and multifamily mortgage debt saw a modest uptick in the first quarter of 2025, signaling continued investor interest and the lengthening duration of outstanding loans. According to the Mortgage Bankers Association (MBA), total mortgage debt increased by 1%—or $46.8 billion—bringing the national total to $4.81 trillion.
Multifamily mortgage debt accounted for a significant portion of that growth, rising $19.9 billion (0.9%) to reach $2.16 trillion. This increase came even as loan originations slowed, noted Reggie Booker, MBA’s associate vice president of CRE research.
The primary holders of commercial and multifamily mortgage debt include:
- Commercial banks, which lead the pack with $1.8 trillion (38% of total debt),
- Federal agency and GSE portfolios and mortgage-backed securities (MBS) at $1.07 trillion (22%),
- Life insurance companies with $752 billion (16%),
- CMBS, CDOs, and other ABS issuers, which hold $642 billion (13%).
In the multifamily segment specifically, agency and GSE portfolios and MBS dominate with 50% of the debt ($1.07 trillion), followed by:
- Banks and thrifts with 30% ($639 billion),
- Life insurance companies at 11% ($242 billion),
- State and local governments holding 4% ($94 billion),
- CMBS/CDO/ABS issuers at 3% ($62 billion).
Among all investor types, CMBS, CDO, and ABS issuers posted the largest dollar growth in Q1, adding $16.2 billion (2.6%). Commercial banks and thrifts increased their holdings by $13.1 billion (0.7%), while agency and GSE portfolios rose by $7.5 billion (0.7%). Life insurance companies grew their debt holdings by $6.1 billion (0.8%).
In percentage terms, REITs led with a 4% increase in overall commercial and multifamily debt, while private pension funds saw the steepest drop at 10.6%.
In the multifamily space, banks and thrifts gained the most in dollars, adding $10 billion (1.6%), followed by GSEs and MBS with $7.5 billion (0.7%). Life insurance companies added $1.9 billion (0.8%). REITs saw the largest percentage jump at 10.9%, while private pension funds again posted the biggest decline, down 12.7%.
These figures reflect a resilient and evolving mortgage market as investors continue to find value in commercial and multifamily assets, even in a more cautious lending environment.
Source: GlobeSt.
