The level of outstanding commercial and multifamily mortgage debt in 2024 grew by 3.7%, or $172 billion, according to a report from the Mortgage Bankers Association (MBA).
The quarterly report found that total mortgage debt, on a quarterly basis, rose by 1.1%, or $50.7 billion, to a total of $4.79 trillion in the fourth quarter of 2024. Multifamily mortgage debt grew by 1.8%, or $38.9 billion to a total of $2.16 trillion during the fourth quarter, and by $111.0 billion, or 5.4%, for the entire year.
Commercial banks and thrifts hold the largest share of this debt at 38% or $1.8 trillion. Federal agency and government-sponsored enterprise portfolios and mortgage-backed securities are the second largest holders of commercial and multifamily mortgages, at 22% or $1.1 trillion. Life insurance companies hold $779 billion, or 16%. Commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities issues hold $626 billion worth of mortgages, or about 13%.
Mike Fratantoni, MBA’s senior vice president and chief economist, said in a statement that multifamily outstanding debt increased at a faster rate than the overall commercial real estate market for the 10th consecutive quarter.
“Multifamily debt now totals almost $2.2 trillion, up 5.4% compared to last year,” Fratantoni said in a statement. “Life insurance companies had the fastest growth in commercial debt outstanding over the past year, accounting for almost 39% of the annual increase. By contrast, bank holdings increased by just 1% over the year, with this growth accounting for 10.5% of the total increase.”
