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Office Leads Q2 Increase in Commercial Mortgage Delinquencies
Commercial mortgage delinquencies increased in the second quarter of 2024, the Mortgage Bankers Association (MBA) said in its latest Commercial Delinquency Report. CMBS loans posted the biggest quarterly increase as well as the highest delinquency rate, according to MBA data.
“The greatest focus continues to be on office loans, which make up about $740 billion of the $4.7 trillion of commercial mortgage debt outstanding,” said Jamie Woodwell, MBA’s head of commercial real estate research. “The CRE market is large and diverse, with significant differences by property type and subtype, market and submarket, borrower, lender, vintage, and more. All of those differences come into play in terms of how an individual loan may perform.”
Based on the unpaid principal balance of loans, delinquency rates for each group at the end of Q2 were as follows:
- CMBS: 4.82%, up 0.47 percentage points from Q1.
- Banks and thrifts: 1.15%, up 0.12 percentage points.
- Fannie Mae: 0.44%, unchanged from Q1.
- Life company portfolios: 0.43%, down 0.09 percentage points.
- Freddie Mac: 0.38%, up 0.04 percentage points.
- ◦Financing
