During the second quarter of 2015, the amount of multifamily mortgage debt outstanding topped $1 trillion for the first time, according to the Mortgage Bankers Association.
The rise in overall debt levels is built on multifamily property incomes and values that continue to grow at strong rates, say MBA’s Reggie Booker and Jamie Woodwell. “Between Q2 2014 and Q2 2015 apartment property incomes, as recorded by the National Council of Real Estate Investment Fiduciaries, grew by 6.5%, and the value of apartment properties — as measured by the Real Capital Analytics/Moody’s CPPI —grew by 15%,” they said. “Over the same period, the amount of multifamily mortgage debt outstanding grew by 9.5%.”
Click to enlarge
Their report further says recent increases in the supply of multifamily mortgage debt have been led byFannie Mae and Freddie Mac.
During the second quarter, multifamily debt in agency and GSE portfolios and MBS grew by 3.4% or $14.5 billion, accounting for 62% of the increase in MDO, Booker and Woodwell say.
“The agency and GSE share, which also includes FHA, of multifamily mortgage debt outstanding now stands at 43% of the total compared to 31% in 2005,” they report.