Commercial mortgage delinquencies were on the rise in the third quarter, according to data from the Mortgage Bankers Association (MBA).
“The share of the balance of delinquent commercial mortgages increased for every major capital source during the third quarter of 2024,” said Jamie Woodwell, MBA’s head of commercial real estate research. “The increases varied by capital source and were driven by the particularities of each individual loan and property. Stresses differ by property type and subtype, geographic market and submarket, loan type and vintage, borrower type and more.”
Based on the unpaid principal balance of loans, delinquency rates for each major capital source by the end of the third quarter were as follows:
- Banks and thrifts (90 or more days delinquent or in non-accrual): 1.24%, an increase of 0.09 percentage points from the second quarter;
- Life company portfolios (60 or more days delinquent): 0.46%, an increase of 0.03 percentage points from the second quarter;
- Fannie Mae (60 or more days delinquent): 0.56%, an increase of 0.12 percentage points from the second quarter;
- Freddie Mac (60 or more days delinquent): 0.39%, an increase of 0.01 percentage points from the second quarter of 2024; and
- Commercial mortgage-backed securities (30 or more days delinquent or in REO): 5.15%, an increase of 0.33 percentage points from the second quarter.
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