As demand drops, commercial and multi-family mortgage debt drops

The amount of outstanding commercial and multi-family mortgage debt declined 1.6 percent between the second and first quarters of the year, according to the Mortgage Bankers Association. The debt dropped to $3.24 trillion in the second quarter, a $52 billion decrease from the first quarter’s outstanding debt. Jamie Woodwell, a vice president with the MBA, said that the figures indicate tepid demand for commercial and multi-family loans. “Demand for commercial and multi-family mortgages, while increasing, remained weak in the second quarter and contributed to the continuing trend of loans paying down and paying off faster than new ones replace them,” Woodwell said. TRD