Commercial, multifamily mortgage debt outstanding climbs

Third-quarter load gains nearly $80 billion from previous quarter

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The level of commercial/multifamily mortgage debt outstanding grew by 2.9 percent in the third quarter, reaching $2.85 trillion, according to the Mortgage Bankers Association analysis of the Federal Reserve Board Flow of Funds data. This increase is $79.9 billion higher than the second quarter. Multifamily mortgage debt outstanding, by itself, grew to $714 billion at the end of the third quarter -- an increase of $10.8 billion, or 1.5 percent, from the second quarter. "Nearly every investor group increased their stake in commercial/multifamily mortgages in the third quarter," said Jamie Woodwell, MBA's senior director of commercial/multifamily research. "As investors assess different investment options for their capital, commercial/multifamily mortgages continue to attract a great deal of interest." The Federal Reserve Flow of Funds data summarizes the holding of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest bot...