The level of commercial/multifamily mortgage debt outstanding decreased in the second quarter to $3.24 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data.
Declines were a result of drops in commercial and multifamily mortgages held in commercial mortgage-backed security (CMBS) and loans held by banks and thrifts, according to a statement. It was a decrease of $52 billion, or 1.6 percent, from the first quarter. Multifamily mortgage debt outstanding declined to $843 billion, a decrease of $5.4 billion, or 0.6 percent, from the first quarter.
"Demand for commercial and multifamily mortgages, while increasing, remained weak in the second quarter and contributed to the continuing trend of loans paying down and paying off faster than new ones replace them," said Jamie Woodwell, MBA’s vice president of commercial real estate research. "As a result, the balance of mortgage debt outstanding declined for every major investor group with the exception of Fannie Mae’s, Freddie Mac’s and FHA/Ginnie Mae’s multifamily portfolios and MBS."
