MBA Chart of the Week: Total Multifamily Mortgage Debt Outstanding
During the second quarter, multifamily mortgage debt outstanding topped $1 trillion for the first time.
The rise in overall debt levels is built on multifamily property incomes and values that continue to grow at strong rates. Between Q2 2014 and Q2 2015 apartment property incomes (as recorded by the National Council of Real Estate Investment Fiduciaries) grew by 6.5 percent, and the value of apartment properties (as measured by the Real Capital Analytics/Moody’s CPPI) grew by 15 percent. Over the same period, the amount of multifamily mortgage debt outstanding grew by 9.5 percent.
Recent increases in the supply of multifamily mortgage debt have been led by Fannie Mae and Freddie Mac. During the second quarter, multifamily debt in agency and government-sponsored enterprise portfolios and mortgage-backed securities grew by 3.4 percent or $14.5 billion, accounting for 62 percent of the increase in MDO. The agency and GSE share, which also includes FHA, of multifamily mortgage debt outstanding now stands at 43 percent of the total compared to 31 percent in 2005.
To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.
(Jamie Woodwell is vice president of commercial/multifamily research and economics with the Mortgage Bankers Association. He can be reached at jwoodwell@mba.org. Reggie Booker is associate director of commercial/multifamily research with MBA; he can be reached at rbooker@mba.org.)
