The level of commercial and multifamily outstanding mortgage debt increased by $47.7 billion in the third quarter, according to the Mortgage Bankers Association.

Multifamily mortgage debt rose $29.8 billion, or 1.4%, from the second quarter to a total of $2.12 trillion. Commercial mortgage debt rose $17.9 billion from the second quarter. The total commercial and multifamily outstanding mortgage debt reached $4.75 trillion at the end of the third quarter.

Life insurance companies gained the most during the quarter in dollar terms, increasing their mortgage debt to $21.2 billion, or close to 3%. Federal agencies, government sponsored enterprises (GSEs), and mortgage-backed securities (MBS) increased their holdings by $12.3 billion, or 1.2%. Commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO), and asset-backed securities (ABS) issues increased their holdings by $9.6 billion, or 1.6%. Banks and thrifts increased their holdings by $6.1 billion (0.3%).

Commercial banks hold the largest share of the outstanding mortgage debt at 38%, or $1.8 trillion. Federal agencies, GSEs and MBSs make up the second-largest group, with 22%, or $1.03 trillion. Life insurance companies hold 16%, worth $757 billion, while CMBS, CDOs and other asset-backed securities hold 13%, worth $619 billion.

“Every major capital source for commercial mortgage debt increased its holdings of mortgages during the third quarter of 2024,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Life insurance companies led the way, accounting for 44 percent of the quarterly increase and boosting their commercial mortgage holdings by nearly 3%. That increase contrasts with banks, which increased their balances of commercial real estate mortgages during the quarter by only 0.3 %. For the ninth quarter in a row, aggregate balances backed by multifamily properties increased more than those backed by other property types.”