### MBA: Commercial Mortgage Delinquencies Rise in Q4 2024
Commercial and multifamily mortgage delinquencies increased in the fourth quarter of 2024, with Commercial Mortgage-Backed Securities (CMBS) loans experiencing the highest delinquency rates and Government-Sponsored Enterprise (GSE) loans at the lowest, according to a report from the Mortgage Bankers Association (MBA). Most lender types saw increases in delinquencies, except for life companies, which experienced a slight decrease of 0.03 percentage points compared to the previous quarter.
“Even with certain market challenges such as low occupancy rates and the uncertain impact of return-to-office mandates in the office sector, as well as an oversupply in the multifamily property market, delinquency rates remain relatively low from a historical perspective,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.
Fratantoni noted that nearly a trillion dollars’ worth of loans are set to mature in 2025. He warned that these maturities, combined with challenging economic conditions and stagnant interest rates, could lead to further increases in delinquencies if borrowers struggle to refinance their loans.
Key statistics from Q4 2024 include:
– **CMBS delinquencies** rose by 0.63 percentage points to 5.78%.
– **Fannie Mae delinquencies** increased by 0.01 percentage points to 0.57%.
– **Freddie Mac delinquencies** rose by 0.01 percentage points to 0.40%.
– **Bank and thrift loan delinquencies** increased by 0.02 percentage points to 1.26%.
Despite the increases, delinquency rates remain moderate when viewed in a historical context, though the coming year could bring additional challenges for borrowers and lenders alike.
