How CRE Mortgage Debt Trended in Q2

The level of commercial/multifamily mortgage debt outstanding increased by $47.1 billion (1.0 percent) in the second quarter of 2025, according to the Mortgage Bankers Association’s latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Total commercial/multifamily mortgage debt outstanding rose to $4.88 trillion at the end of the second quarter. Multifamily mortgage debt alone increased $27.7 billion (1.3 percent) to $2.19 trillion from the first quarter of 2025.

Commercial and multifamily mortgage debt outstanding increased modestly in this year’s second quarter. Every major capital source added to its holdings, but growth varied, with life insurance companies increasing their holdings by 2.4 percent and banks by 0.9 percent.

Largest investor groups

The four largest investor groups are: banks and thrifts; federal agency and government sponsored enterprise portfolios and mortgage-backed securities; life insurance companies; and commercial mortgage-backed securities, collateralized debt obligation and other asset-backed securities issues.

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Commercial banks continue to hold the largest share (38 percent) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (22 percent) at $1.08 trillion.

Life insurance companies hold $769 billion (16 percent), and CMBS, CDO and another other ABS issues hold $643 billion (13 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the “CMBS, CDO and other ABS” category.

Changes in commercial mortgage debt outstanding

In the second quarter, life insurance companies saw the largest gains in dollar terms in their holdings of commercial/multifamily mortgage debt—an increase of $17.7 billion (2.4 percent). Bank and thrifts increased their holdings by $16.3 billion (0.9 percent), agency and GSE portfolios and MBS increased their holdings by $8.7 billion (0.8 percent), and REITs increased their holdings by $1.9 billion (2.2 percent).

In percentage terms, private pension funds saw the largest increase—3.0 percent—in their holdings of commercial/multifamily mortgages. Conversely, state and local government retirement funds saw their holdings decrease 1.9 percent.

For more information on this report, click here.

—Posted on October 24, 2025