Woodwell also noted that every major capital source increased its holdings of mortgages backed by income-generating properties. Life insurance companies saw the largest growth in holdings at 1.8%, while banks’ holdings increased by just 0.2%.
Real Estate Investment Trusts (REITs) saw the largest percentage increase in their multifamily mortgage debt holdings, growing by 7.8%. On the flip side, state and local government retirement funds saw the biggest decline in their multifamily mortgage debt holdings, down 12.8%.
Multifamily mortgage debt alone grew by $19.4 billion (0.9%) to reach $2.09 trillion, with agency and GSE portfolios holding the largest share at 49% ($1.02 trillion). Banks and thrifts followed, holding 30% ($625 billion), and life insurance companies accounted for 11% ($234 billion).
Commercial banks remain the largest holders of commercial/multifamily mortgage debt, holding $1.8 trillion or 38% of the total. Federal agencies and government-sponsored enterprises (GSEs), along with mortgage-backed securities (MBS), are the second-largest holders with $1.02 trillion, representing 22% of the market.
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