MBA: Commercial and Multifamily Mortgage Debt Outstanding Increased to $4.99 Trillion in Fourth-Quarter 2025

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The level of commercial and multifamily mortgage debt outstanding at the end of 2025 was $214 billion (4.5%) higher than at the end of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

MBA’s report found that total mortgage debt outstanding, on a quarterly basis, rose by 1.5% ($75.2 billion) to $4.99 trillion in the fourth-quarter of 2025. Multifamily mortgage debt grew by $57.3 billion (2.6%) to $2.29 trillion during the fourth quarter, and by $142.9 billion (6.6%) for all of 2025.

“Commercial and multifamily mortgage debt outstanding increased to almost $5.0 trillion in the fourth quarter of 2025, up 4.5% compared to the fourth quarter of 2024. Multifamily debt now totals $2.3 trillion, up 6.6.% compared to 2024,” said Reggie Booker, MBA’s Associate Vice President of Commercial Research. “Growth was driven largely by multifamily lending and sustained activity from agency and GSE portfolios, which led to both quarterly and annual gains. While banks remain the largest holders overall, the steady pace of growth across investor groups reflects a market that is still active, but increasingly selective as lenders navigate a higher rate environment and evolving property fundamentals.”

The four major investor groups are: banks and thrifts; commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues; federal agency and government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS); and life insurance companies.

MBA’s analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest in whole loans for which they hold the mortgage note (and which appear in this data under “Life Insurance Companies”), and in CMBS, CDOs and other ABS for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues).

Commercial banks and thrifts continue to hold the largest share (37%) of commercial/multifamily mortgages at $1.9 trillion. Agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages at $1.1 trillion (23% of the total). Life insurance companies hold $774 billion (16%), and CMBS, CDO and other ABS issues hold $647 billion (13%).

MULTIFAMILY MORTGAGE DEBT OUTSTANDING

Looking solely at multifamily mortgages, agency and GSE portfolios and MBS hold the largest share of total debt outstanding at $1.1 trillion (50% of the total), followed by commercial banks with $660 billion (29%), life insurance companies with $262 billion (11%), state and local governments with $99 billion (4%), and CMBS, CDO and other ABS issues with $73 billion (3%). 

CHANGES IN COMMERCIAL & MULTIFAMILY MORTGAGE DEBT OUTSTANDING

In the fourth quarter of 2025, Agency and GSE portfolios and MBS saw the largest rise in dollar terms in their holdings of commercial/multifamily mortgage debt, with an increase of $35.0 billion (3.2%). Commercial banks increased their holdings by $24.8 billion (1.3%), life insurance companies increased their holdings by $11.5 billion (1.5%), and CMBS, CDO and other ABS issues increased their holdings by $3.6 billion (0.6%). Non-financial corporate businesses saw a decline (2.3%) in their holdings by $2.7 billion.

In percentage terms, agency and GSE portfolios and MBS saw the largest increase – 3.2%– in their holdings of commercial/multifamily mortgages.

CHANGES IN MULTIFAMILY MORTGAGE DEBT OUTSTANDING

The $57.3 billion rise in multifamily mortgage debt outstanding between the third and fourth quarters of 2025 represented a 2.6% increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase, at $35.0 billion (3.2%), in their holdings of multifamily mortgage debt. Commercial banks increased their holdings of multifamily mortgage debt by $8.6 billion (1.3%), and life insurance companies increased holdings by $7.4 million (2.9%). Finance companies saw a decline (2.2%) in their holdings by $248 million.

In percentage terms, REITs recorded the largest increase in holdings of multifamily mortgages (47.1%), and finance companies saw the biggest decrease (2.2%).

CHANGES IN COMMERCIAL/MULTIFAMILY MORTGAGE DEBT OUTSTANDING DURING 2025

Between December 2024 and December 2025, agency and GSE portfolios and MBS saw the largest gain in dollar terms in their holdings of commercial/multifamily mortgage debt – an increase of $79.1 billion (7.4%). Commercial banks increased their holdings of commercial/multifamily mortgages by $68.0 billion (3.8%). 

In percentage terms, private pension funds saw the largest increase (10.4%) in their holdings of commercial/multifamily mortgages.

CHANGES IN MULTIFAMILY MORTGAGE DEBT OUTSTANDING DURING 2025

The $142.9 billion rise in multifamily mortgage debt outstanding during 2025 represents a 6.6% increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase in their holdings of multifamily mortgage debt at 7.45% ($79.1 billion). Finance companies saw the largest decrease in their holdings, down $963 million (8%).

MBA’s analysis is based on data from the Federal Reserve Board’s Financial Accounts of the United States, the Federal Deposit Insurance Corporation’s Quarterly Banking Profile, and data from Trepp LLC. More information on this data series is contained in Appendix A. Click here to view the report: https://www.mba.org/news-and-research/research-and-economics/commercial-multifamily-research/commercial-multifamily-mortgage-debt-outstanding-x44535.