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CRE Loan Delinquencies Reach Lowest Point Since Pandemic Began
Delinquency rates for mortgages backed by commercial and multifamily properties reached their lowest point since the onset of the COVID-19 pandemic, the Mortgage Bankers Association (MBA) reported. As July ended, 95.5% of outstanding loan balances were current, up 30 basis points from June.
“Loan performance continues to be very property-type dependent, with lodging loans still the hardest hit but showing strong improvement,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “Office properties saw a decline in overall delinquencies, but there was an uptick in loans that are newly delinquent. The strength of the economy should continue to support most property types in the coming months.”
Although loans backed by lodging and retail properties continue to see the greatest stress, they showed improvement last month. Lodging loan delinquencies declined 110 bps to 16.5%, while retail late-pays declined from 10% in June to 9%. Lowest were multifamily delinquencies at 1.5%.
- ◦Financing
