Commercial and multifamily mortgage debt outstanding surpassed $5 trillion for the first time during the first quarter of 2026, according to new data from the Mortgage Bankers Association (MBA).
MBA's latest Commercial/Multifamily Mortgage Debt Outstanding report found total debt outstanding increased by $26.3 billion, or 0.5%, during the quarter, reaching $5.02 trillion. Multifamily mortgage debt accounted for most of that growth, rising $23 billion, or 1.0%, to $2.32 trillion.
"Commercial and multifamily mortgage debt outstanding surpassed $5 trillion in the first quarter of 2026, a milestone that speaks to the resiliency and depth of commercial markets," said Reggie Booker, MBA's Associate Vice President of Commercial Research. "Multifamily continued to drive growth, with debt outstanding rising to $2.32 trillion as agencies, GSEs, and banks steadily expanded their holdings. Despite the modest pullback in CMBS, the overall picture is one of a market that continues to move forward."
Commercial banks and thrifts continue to hold the largest share of commercial and multifamily mortgage debt at $1.9 trillion, representing 38% of the market. Agency and government-sponsored enterprise (GSE) portfolios and mortgage-backed securities hold the second-largest share at $1.2 trillion, or 23%, followed by life insurance companies at $775 billion and CMBS, CDO and other asset-backed securities at $637 billion.
Banks also posted the largest increase in holdings during the quarter, adding $17.5 billion in commercial and multifamily mortgage debt. Agency and GSE portfolios increased holdings by $12.8 billion, while life insurance companies added $3.3 billion. CMBS, CDO and other ABS holdings declined by $9.6 billion, or 1.5%.
Multifamily lending remained the primary driver of growth during the quarter. Agency and GSE portfolios and mortgage-backed securities now account for roughly half of all multifamily mortgage debt outstanding, holding $1.2 trillion. Banks and thrifts hold another $665 billion, representing 29% of the market, while life insurance companies hold $265 billion.
Agency and GSE portfolios recorded the largest increase in multifamily holdings during the quarter, adding $12.8 billion. Banks increased multifamily holdings by $5.8 billion, while life insurers added $3.2 billion.
For mortgage bankers, the report highlights where capital continued to flow during the first quarter. Banks, agencies, and life insurers all expanded their commercial and multifamily mortgage holdings, helping offset a decline in CMBS activity. The data also underscores the continued importance of multifamily lending, which accounted for nearly 90% of the quarter's overall growth in mortgage debt outstanding.
