Delinquency rates for mortgages backed by commercial properties increased to 4.02% during the first quarter of 2026, up from 3.86% in the fourth quarter of 2025.
According to data from the Mortgage Bankers Association (MBA), the share of loans that were delinquent increased for some property types – particularly office, lodging, retail, and multifamily – while declining for industrial and health care properties.
Among capital sources, CMBS loan delinquency rates saw the highest levels – 5.21% of CMBS loan balances were 30 days or more delinquent, up from 4.97% at the end of last quarter.
Non-current rates for other capital sources remained moderate: 1.47% of life company loan balances were delinquent, down from 1.50%; 0.97% of GSE loan balances were delinquent, up from 0.63% the previous quarter; and 0.96% of FHA multifamily and health care loan balances were delinquent, up from 0.65% the prior quarter.
Judie Ricks, MBA’s associate vice president of commercial real estate research, observed, “The data show a gradual but persistent increase in delinquency rates in the overall market. In the most recent quarter, there were increases in short-term delinquency for all property types, except industrial, with some of the largest increases coming from multifamily, office, and health care properties. GSE, FHA, and CMBS loans also saw large jumps in early-stage delinquency. This is a slight difference from last year – when long-term delinquency rates trended higher – and suggests that the strong market for refinances and modifications in 2025 was conducive to better positioning troubled loans.”
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