The level of commercial/multifamily mortgage debt outstanding grew by 2.8% in the third quarter to exceed $3.2 trillion – a new record – despite a smaller quarter-over-quarter increase when compared with the previous period, according to the Mortgage Bankers Association.

The $3.22 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was an increase of $87.7 billion from the second quarter 2007. That fell short of the $107 billion volume gain from the first to second quarters this year, according to the MBA’s analysis of the Federal Reserve Board Flow of Funds data.

“The third quarter included the periods immediately before and immediately after the dramatic adjustments in the capital markets,” says Jamie Woodwell, MBA’s senior director of commercial/multifamily research. “Even with the drop (compared with the first- to second-quarter gain) the $87.7 billion increase in the third quarter still marked the fourth largest increase on record.”

Multifamily mortgage debt outstanding grew to $813 billion, an increase of $23.5 billion or 3% from the second quarter. The Federal Reserve Flow of Funds data summarizes the holding of loans or, if the loans are securitized, the form of the security.