The delinquency rates for Commercial Mortgage-Backed Securities loan (CMBS) mortgages grew to 4.97 percent, a .15 percent increase, during the third quarter, according to the Mortgage Bankers Association’s (MBA) latest commercial real estate finance Loan Performance Survey. The loan balances were 30 or more days delinquent.
“Challenging fundamentals, particularly in the multifamily and office markets, along with higher rates, are having an impact on performance,” Mike Fratantoni, MBA’s senior vice president and chief economist, said. “However, delinquency rates remain historically low across most capital sources. The large number of scheduled maturities coming due amidst the recent spike in interest rates will continue to be a headwind for commercial mortgage performance in the quarters ahead.”
CMBS are fixed-income investment products that are backed by mortgages on commercial properties. The survey collected information on commercial and multifamily mortgage portfolios.
Survey participants reported $3 trillion in loans, representing 59 percent of the $5 trillion in total commercial and multifamily mortgage debt outstanding as of the second quarter.
The delinquent loans were from a mix of property types with the office category having the highest delinquency rates.
Delinquency rates for other capital sources remained low, ranging between 0.9 percent and 1.33 percent. FHA loan delinquencies dropped from 1.06 percent.