Multifamily Loans Now Top $2T
Multifamily loan volume was up 9.3% over last year, or $170.8 billion, according to data from Trepp.
In a first, multifamily loans grew to more than $2 trillion in the third quarter, according to data from Trepp.
Multifamily loan volume was up 9.3% over last year, or $170.8 billion. Volume from GSEs Fannie Mae and Freddie Macincreased by $106.1 billion while the rest of the increase owed to a 17.6% uptick in multifamily loan inventory for banks and thrifts, a 19.2% increase in inventory held by securitization vehicles, and and 8.1% increase in loans held by life insurance companies.
The Trepp analysis shows the banks and thrifts held a $262.41 billion, or 10.4%, increase in their total commercial mortgage holdings, to $2.78 trillion, a figure that equals just more than 50%. of outstanding commercial real estate loan inventory in the US. However, CMBS trusts and other securitization vehicles had the most significant increase on a percentage basis, ticking up 15.58%, or $106.1 billion, to $786.9 billion.
“Meanwhile, Trepp calculated that $447.42 billion of commercial mortgages will come due in 2023 and another $486.24 billion in 2024,” write Trepp’s Matt Anderson & Orest Mandzy. “Banks and thrifts hold the bulk of those loans. That stands to reason, given that banks and thrifts hold more than half of the country’s outstanding commercial mortgages. CMBS faces the maturity of only $15.04 billion of loans in 2023 and $31.09 billion the following year…Through 2027, $2.54 trillion of loans will come due. Besides the hefty maturing loans held by banks and thrifts, the GSEs will face nearly $430 billion of maturities.”
Overall, commercial mortgages increased in Q3 by $474.2 billion, a 9.3% increase year over year.