Mortgage delinquencies across all major lender groups increased in the first quarter of 2023, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Delinquency Report. Although quarterly increases were no larger than 0.13 percentage points for each group, they occurred across the board nonetheless.
Commenting on this development, MBA’s head of commercial real estate research Jamie Woodwell 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 Q1 – 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%, life company portfolios at 0.21%, Fannie Mae at 035% and Freddie Mac at 0 13%. CMBS saw a rise of 3 00%, with an increase of 010 percentage points from Q4 2022 .
The data indicates that CRE loan delinquencies have risen among all major lender groups during this period , suggesting further potential strain on these sectors going forward .
