**Commercial Mortgage Delinquencies Rise in Q4 2024**
Delinquency rates for mortgages backed by commercial properties increased during the fourth quarter of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial Real Estate Finance Loan Performance Survey. The share of delinquent loans rose across several property types, particularly in the office, lodging, retail, and multifamily sectors, while industrial properties experienced a decline in delinquencies.
Among capital sources, commercial mortgage-backed securities (CMBS) had the highest delinquency rate at 5.3%. In contrast, loans backed by Fannie Mae and Freddie Mac reported a significantly lower delinquency rate of 0.6%.
“The delinquency rate for commercial mortgages increased during the final three months of 2024, with rises across most capital sources and property types,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The challenges facing different sectors vary, with office properties perhaps encountering the most difficult combination of weaker fundamentals and persistently high interest rates. However, despite these conditions, other property types continue to benefit from a relatively strong economy.”
About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). In addition, Steve founded Madison Avenue Technology (www.madisonave.tech). With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.
