According to the latest Commercial Delinquency Report from the Mortgage Bankers Association (MBA), commercial mortgage delinquencies saw an increase in the fourth quarter of 2023. The only exception was one lender type, as all others experienced a rise during this time.
MBA’s head of commercial real estate research, Jamie Woodwell, stated that “commercial mortgage delinquency rates rose again” in Q4 2023. This can be attributed to higher interest rates, uncertainty about property values and challenges in some property fundamentals affecting the market.
It is important to note that each lending group tracks delinquencies differently. Based on unpaid principal balance of loans, here are the delinquency rates for each group at end of Q4 2023:
– Banks and thrifts (90 or more days past due or non-accrual): 0.94%, up by 0.09 percentage points from Q3
– Life company portfolios (60 or more days past due): 0.36%, up by o.o4 percentage points from Q3
– Fannie Mae (60 or more days past due): o.o46%, down by o.o8 percentage points from Q2
– Freddie Mac (60 or more days past due): o.o28%, up by o.o04 percentage points fromQ2
-CMBS(30ormoredayspastdueorinREO) :o04percentagepointsfromQ2
The MBA also pointed out that these increases were seen across most major capital sources over a six-month period.
