You are currently viewing Investors Increase CRE, Multifamily Mortgage Holdings

Investors Increase CRE, Multifamily Mortgage Holdings

  • Post author:
  • Post category:Blog

According to the Mortgage Bankers Association, almost every major investor group increased their commercial and multifamily mortgage allocations in Q3 2021. With delinquency rates down for these types of mortgages, investors may feel more secure in raising holdings. Outstanding commercial and multifamily mortgage debt increased by a staggering $64.8 billion. Reports from MBA indicate that commercial banks hold the largest share of these mortgages ($1.5 trillion) at 38% of the total, followed by agency and GSE portfolios ($885 billion) and life insurance companies ($609 billion). While commercial and multifamily mortgage holdings are up overall, not all property types have benefitted equally. Performance varies significantly depending on industry and location. Lodging and retail properties, which were most impacted by the pandemic, continue to struggle compared to other sectors. The MBA’s VP of Commercial Real Estate Research, Jamie Woodwell, stated that “strong interest from both borrowers and lenders is likely to continue to drive increases in commercial and multifamily mortgage debt in 2022.” Experts believe the trend is unlikely to change unless a major market event, like federal stimulus drying up, shakes investor enthusiasm.