The level of outstanding commercial and multifamily debt remained relatively unchanged during the fourth quarter last year.
According to a recent report from the Mortgage Bankers Association, outstanding debt in this sector edged 0.6 percent lower, which is equivalent to roughly $14 billion. While a decline of $14 billion may seem like a sizable amount, this is in relevance to a current outstanding commercial debt total of $2.359 trillion.
"The amount of mortgage debt on commercial and multifamily properties remained essentially flat in the fourth quarter," said MBA vice president of commercial real estate research Jamie Woodwell. "Fannie Mae, Freddie Mac, FHA, life insurance companies and banks and thrifts all increased their holdings of commercial and multifamily mortgages."
From the third quarter, real estate data indicates that total commercial and multifamily debt was only $3 billion lower as multifamily mortgage debt rose $4 billion to a total of $808 billion.
While the commercial lending marketplace may seem stagnant, a number of industry experts anticipate recent gains in builder confidence to help the construction rates, which could result in less overall debt.