According to the latest Loan Performance Survey from the Mortgage Bankers Association (MBA), delinquency rates for mortgages backed by commercial properties increased in the fourth quarter of 2024. The survey found that there was a rise in delinquent loans for certain property types, including office, lodging, retail and multifamily properties. However, industrial properties saw a decrease in their delinquency rate.
The highest loan delinquency rates were seen among CMBS loans at 5.3%, while Fannie Mae and Freddie Mac had much lower rates at 0.6%.
MBA’s SVP and chief economist Mike Fratantoni stated that “the final three months of 2024 saw an increase in commercial mortgage delinquencies across most capital sources and property types.” He also noted that different sectors are facing varying challenges due to weaker fundamentals and high interest rates.
Despite these challenges, other property types continue to benefit from a strong economy according to Fratantoni.
