Commercial/Multifamily Debt Outstanding Declined In Q2

Posted by Orb Staff on September 23, 2010 No Comments
Categories : Commercial Mortgage

6728_commercial_building_cityscape Commercial/Multifamily Debt Outstanding Declined In Q2 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 driven by drops in commercial and multifamily mortgages held in commercial mortgage-backed securities and loans held by banks and thrifts.

The $3.24 trillion in debt outstanding was a decrease of $52 billion, or 1.6%, from the first quarter. Multifamily mortgage debt outstanding declined to $843 billion – a decrease of $5.4 billion, or 0.6%, 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,’ says 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."

To view the full report, click here.

SOURCE: Mortgage Bankers Association

Register here to receive our Latest Headlines email newsletter




Leave a Comment