Commercial Mortgage Delinquencies Increase in Q1 2025, CMBS Hit Hardest
The Mortgage Bankers Association (MBA) has confirmed an uptick in commercial mortgage delinquencies during the first quarter of 2025, with the commercial mortgage-backed securities (CMBS) sector experiencing the most significant rise. According to the MBA’s latest data, CMBS delinquencies reached 6.42%, representing an increase of 0.64 percentage points from the previous quarter.
Banks and thrifts recorded the second-highest delinquency rate at 1.28%, a modest increase of 0.02 percentage points. Other sectors posted comparatively lower figures: Fannie Mae loans reported a 0.63% delinquency rate, life company portfolios stood at 0.47%, and Freddie Mac loans came in at 0.46%. The MBA emphasized that each capital source uses its own methodology for calculating delinquencies.
“Commercial mortgage delinquencies rose across all major capital sources in the first quarter of 2025, reflecting growing pressure on certain property sectors and loan types,” said Reggie Booker, MBA’s Associate Vice President of Commercial Real Estate Research. “While delinquency rates remain relatively low for most investor groups, the uptick in CMBS delinquencies signals heightened stress in parts of the market that lack refinancing options or other challenges.”
The findings highlight broader strains across the commercial real estate market, particularly in areas where borrowers face limited avenues for refinancing or restructuring debt.
