**Q3 Brings Mixed Results for CRE Mortgage Delinquency Rates**
Commercial mortgage delinquencies produced mixed results in the third quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report.
The commercial mortgage-backed securities (CMBS) sector experienced a notable increase in delinquencies, with the rate rising by 23 basis points to 6.59%. Meanwhile, government-sponsored enterprises Fannie Mae and Freddie Mac also saw slight upticks in their commercial loan delinquency rates. Fannie Mae’s delinquency rate rose by 0.07 percentage points to 0.68%, while Freddie Mac experienced a 0.04-point increase, finishing the quarter at 0.51%.
In contrast, both banks and life insurance companies reported modest improvements. Life insurers saw their commercial mortgage delinquency rates decline by 0.04 percentage points to 0.47%, and banks posted a 0.02-point drop to 1.27%.
“Property values have stabilized, but loan performance is impacted by shifting property fundamentals, including higher vacancy rates and slower rent growth,” said Reggie Booker, MBA’s associate vice president of commercial real estate research. “Delinquency performance remains highly dependent on property type and loan structure.”
The MBA’s quarterly report analyzes delinquency rates across the five largest capital sources in commercial real estate finance. Together, these sources account for more than 80% of the outstanding commercial mortgage debt. Due to differences in how each source tracks delinquency data, the rates are not directly comparable across lender types.
