The level of outstanding commercial and multifamily mortgage debt grew by 3.4 percent during the second quarter of this year, according to the Mortgage Bankers Association’s Federal Reserve Board Flow of Funds data.
The 3.4 percent increase brings the total debt to about $3.1 trillion, an increase of $103.8 billion from the first quarter.
Multifamily mortgage debt grew to $778 billion, an increase of $16.1 billion or 2.1 percent from the first quarter.
“These numbers reflect the period preceding the recent changes in the credit markets, and show investors continued to invest heavily in commercial/multifamily mortgage debt during the second quarter,” said Jamie Woodwell, Senior Director of Commercial/Multifamily Research.
“While next quarter’s numbers are likely to show the impact of the recent market disruptions, commercial/multifamily fundamentals remain strong – property markets remain solid, loan delinquency rates are extremely low, and bonds backed by commercial real estate loans continue to perform well.”