Commercial and multifamily mortgage delinquencies increased in the second quarter of 2023, the Mortage Banker Association (MBA) said Tuesday. MBA’s latest Commercial/Multifamily Delinquency Report shows increases for all lender types except life companies. 

“Delinquency rates on loans backed by commercial real estate properties rose during the second quarter for most capital sources,” said Jamie Woodwell, MBA’s head of commercial real estate research.  

He continued, “Although the uptick in delinquency rates was expected, they remain at the lower end of historical ranges. Higher and volatile interest rates, uncertainty about property values and stresses in some property markets have increased pressure on some loans and properties.”   

Based on the unpaid principal balance of loans, delinquency rates for each group at the end of Q2 2023 were as follows: 

• Banks and thrifts: 0.66%, up 0.09 percentage points from Q1; 
• Life company portfolios: 0.14%, down 0.07 percentage points; 
• Fannie Mae: 0.37%, up 0.02 percentage points; 
• Freddie Mac: 0.21%, up 0.08 percentage points; and 
• CMBS: 3.82%, up 0.82 percentage points. 

MBA’s Commercial/Multifamily Delinquency Report doesn’t include construction and development loans.