Commercial and Multifamily Mortgage Debt Outstanding Increased in Q3 2025 

The level of commercial/multifamily mortgage debt outstanding increased by $53.4 billion (1.1 percent) in the third 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 $4.93 trillion at the end of the third quarter. Multifamily mortgage debt alone increased $40.3 billion (1.8 percent) to $2.24 trillion from the second quarter of 2025. 

Commercial and multifamily mortgage debt continued to grow during last year’s third quarter, driven by strong increases in multifamily lending. While economic and market uncertainty persists, agency and GSE portfolios once again led the market, with banks and life insurance companies also posting solid gains. Total commercial real estate debt increased to $4.93 trillion in the third quarter, up 1.1 percent from the second quarter and up 4.0 percent from the third quarter of 2024. Multifamily debt grew to $2.24 trillion, up 1.8 percent from the second quarter and up 5.9 percent from the third quarter of 2024 and now accounts for 22.5 percent of total commercial debt. 

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Commercial banks continue to hold the largest share (37 percent) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (23 percent) at $1.11 trillion. Life insurance companies hold $783 billion (16 percent), and CMBS, CDO and another other ABS issues hold $642 billion (13 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues.

Changes in commercial and multifamily mortgage debt outstanding

In the third quarter, agency and GSE portfolios and MBS saw the largest gains in dollar terms in their holdings of commercial and multifamily mortgage debt—an increase of $27.8 billion (2.6 percent). Bank and thrifts increased their holdings by $13.8 billion (0.8 percent), life insurance companies increased their holdings by $12.1 billion (1.6 percent), and Federal government increased their holdings by $1.2 billion (1.2 percent).  

In percentage terms, agency and GSE portfolios and MBS saw the largest increase—2.6 percent—in their holdings of commercial and multifamily mortgages. Conversely, REITs saw their holdings decrease 2.5 percent. 

For more information on this report, click here.

—Posted on January 26, 2026