Mortgage delinquencies for commercial and multifamily properties increased in the second quarter of 2023, according to a report released Tuesday by the Mortgage Bankers Association (MBA). All lender types except life companies saw increases.
“Delinquency rates on loans backed by commercial real estate rose during Q2 for most capital sources,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Although this uptick was expected, they remain at the lower end of historical ranges.” He noted that higher and volatile interest rates as well as uncertainty about property values have put pressure on some loans and properties.
The post-Q2 2023 delinquency rate based on unpaid principal balance was 0.66% for banks/thrifts (up 0.09 percentage points from Q1), 0.14% for life company portfolios (down 0.07 percentage points), 037% Fannie Mae (up 02 percentage points) ,0 21 % Freddie Mac( up 08 percent age point )and 3 82 % CMBS( up .82 percent age point ). The report does not include construction or development loans .
The latest data shows that mortgage delinquencies are increasing across all lenders in CRE markets – a trend which is likely to continue if current market conditions persist..
