The Mortgage Bankers Association (MBA) reported that commercial and multifamily mortgage delinquencies increased in the first quarter of this year.
Within this sector, the delinquency rate was highest for commercial mortgage-backed securities (CMBS) at 3%, an increase of 0.10 percentage points from the fourth quarter of 2022. Banks and thrifts had a 0.58% delinquency rate, an increase of 0.13 percentage points, while Fannie Mae has a 0.35% delinquency rate, an increase of 0.11 percentage points.
The delinquency rate was also up for life company portfolios (0.21%, an increase of 0.10 percentage points) and Freddie Mac (0.13%, an increase of 0.01 percentage point).
“Ongoing stress caused by higher interest rates, uncertainty around property values, and questions about fundamentals in some property markets are beginning to show up in commercial mortgage delinquency rates,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Delinquency rates increased for every major capital source during the first quarter, foreshadowing additional strains that are likely to work their way through the system.”
To download the current report, visit: https://www.mba.org/news-and-research/research-and-economics/commercial-multifamily-research/commercial-multifamily-mortgage-delinquency-rates.