Newly released data from the Mortgage Bankers Association (MBA) shows that commercial/multifamily mortgage debt outstanding increased by $44.3B from Q4 2017 to Q1 2018 – a 1.4% increase. According to the MBA, this is the most substantial Q1 increase since before the recession.
The growth was driven in large part by the CMBS market, which has seen three straight quarters of growth for this first time since 2007. The sector added $6 billion to its balances over the course of Q1 2018, a stark divergence from the same period last year, when CMBS balances decreased $21 billion.
Overall commercial/multifamily debt outstanding stands at $3.21 trillion. Multifamily debt outstanding stands at $1.3 trillion. The chart below outlines how mortgage debt has flowed across the commercial and multifamily sectors since 2007.