Mortgage delinquencies for commercial and multifamily properties increased in the first quarter of 2023, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. Although increases were no larger than 0.13 percentage points for each major lender group, they occurred across all categories nonetheless.
Commenting on this development, Jamie Woodwell – MBA’s head of commercial real estate research – stated: “Ongoing stress caused by higher interest rates, uncertainty around property values and questions about fundamentals in some property markets are beginning to show up in commercial mortgage delinquency rates. Delinquency rates increased for every major capital source during the first quarter foreshadowing additional strains that are likely to work their way through the system.”
By lender group Q1 delinquencies were as follows: Banks and thrifts at 0.58%, up 0.13 percentage points from Q4 2022; life company portfolios at 0
