According to the Mortgage Bankers Association (MBA), delinquency rates for commercial mortgages saw a slight decrease in the second quarter of 2024. The highest delinquency rate was reported for CMBS loans, but even that showed improvement during Q2.
At the end of the quarter, MBA reported that 97.0% of outstanding loan balances were either current or less than 30 days late, an increase from Q1’s rate of 96.8%. Meanwhile, there was no change in loans that were more than 90 days delinquent or in REO at a rate of 2.5%, and there was a decrease from Q1’s rate for loans between 60-90 days delinquent at only .02%. Loans between
30-60 days past due remained unchanged from Q1 at .04%.
Head researcher for commercial real estate at MBA Jamie Woodwell stated that most property types experienced lower delinquency rates last quarter except office properties which saw an increase.
However, he noted that this increase appears to be slowing down over recent quarters.
Woodwell also mentioned how each property and loan is facing unique challenges such as changes in interest rates and property values as well as varying market conditions depending on factors like type/subtype,
location, owner details etc.
As more properties go through these changes throughout the year with maturing loans,
they will continue adjusting to these new circumstances.”
