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Commercial Mortgage Delinquencies Tick Upward
The balance of commercial and multifamily mortgages that are not current increased for the first time in three months in November, driven by more loans becoming newly delinquent, the Mortgage Banker Association reported. The delinquency rate ticked upward 30 basis points to 5.7% from October.
As with MBA’s third-quarter performance report, which saw delinquencies decline over the quarter, loan performance in November varied widely by sector. 22.1% of the balance of lodging loans and 12.9% of the balance of retail loans were non-current in November, up from 21.0% and 12.0%, respectively, in October.
The overall share of lodging and retail loan balances in arrears increased in November, with an uptick in newly delinquent balances. That compares to delinquencies in the industrial, office and multifamily sectors: respectively, down 10 bps to 2.5%, up 40 bps to 2.4%, and unchanged at 1.6%. By capital source, CMBS led the way in delinquencies.
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