The level of commercial/multifamily mortgage debt outstanding increased by $37.7 billion, or 0.8%, in the second quarter of 2023, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Total commercial/multifamily mortgage debt outstanding rose to $4.6 trillion at the end of Q2. Multifamily mortgage debt alone increased $26.4 billion to $2.03 trillion from Q1 2023.

“Commercial and multifamily mortgage debt outstanding rose again in the second quarter, driven by increases in the mortgage holdings of life companies, the GSEs, banks, and other depositories,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Commercial and multifamily mortgage originations are down by more than half from a year ago, and this lack of new demand means that fewer loans are being paid off. This in turn is helping to maintain, and in some cases even grow, the amount of credit outstanding.”