National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
MBA: Commercial Mortgage Delinquencies Rise in Q4 2024
With CMBS at the high end and GSE loans at the low end, commercial and multifamily mortgage delinquencies increased in the fourth quarter of 2024, the Mortgage Bankers Association (MBA) reported. All lender types saw increases except for life companies, for which delinquencies decreased 0.03 percentage points compared to Q3.
“Even with certain market challenges such as low occupancy rates and the uncertain impact of return-to-office mandates in the office market, and oversupply in the multifamily property market, delinquency rates remain relatively low from a historical perspective,” said Mike Fratantoni, MBA’s SVP and chief economist.
He added, “MBA estimates that almost a trillion dollars’ worth of loans are maturing in 2025, and these maturities, coupled with more challenging economic conditions and rangebound interest rates, may result in some further increases in delinquencies if borrowers cannot successfully refinance these loans.”
CMBS delinquencies increased by 0.63 percentage points to 5.78% as Q4 ended. Delinquencies for Fannie Mae and Freddie Mac increased by 0.01 percentage points to 0.57% and 0.40%, respectively. At banks and thrifts, loan delinquencies increased 0.02 points to 1.26%.
- ◦Financing
