**Commercial Mortgage Delinquencies Rise in Q2 2025, Led by CMBS Loans**
Commercial mortgage delinquencies saw an uptick in the second quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. The increase was most pronounced among commercial mortgage-backed securities (CMBS), where the delinquency rate rose to 6.36%, marking a 45-basis-point increase from the first quarter. This figure represents loans that are 30 or more days delinquent or in real estate owned (REO) status.
Banks and thrifts were the only other lender category to report delinquencies above 1%, with a Q2 delinquency rate of 1.29% — up one percentage point from the previous quarter.
Other lender groups exhibited lower delinquency rates:
– Fannie Mae: 0.61%, a 2-basis-point decline from Q1
– Life company portfolios: 0.51%, up 4 basis points
– Freddie Mac: 0.47%, a 1-basis-point increase
“The delinquency rate for commercial mortgages increased in the second quarter of 2025 across most major capital sources,” said Reggie Booker, MBA’s associate vice president of commercial real estate research. “The largest increase was among CMBS loans, driven by rising delinquencies in both multifamily and office properties. Delinquency trends continue to reflect differences in property type, loan structure, geography, and borrower profile.”
This rise in commercial delinquencies highlights ongoing uncertainty in the market and underscores the importance of closely monitoring trends across different property and loan categories.
