MBA Reports Lower Commercial Mortgage Delinquency Rate for Q3

Overall commercial mortgage delinquency rates declined in the third quarter of 2025 after rising significantly in Q2, the Mortgage Bankers Association reported. The overall balance of commercial mortgages that are not current also decreased. However, some capital sources and some property types saw delinquencies increase in Q3.

“Compared to the first quarter, third-quarter delinquency rates were up, driven by increases in later-stage delinquencies and foreclosure/REO properties,” said Judie Ricks, MBA’s associate VP of commercial real estate research. “It is worth watching this portion of the market the rest of the year amidst broader economic uncertainty.”

Multifamily and healthcare properties both ended Q3 with higher delinquencies, while late-pay rates receded for office, industrial, retail and lodging properties. Among capital sources, CMBS recorded the highest delinquency rate, with a 52-basis-point quarterly increase to 5.66%. Fannie Mae and Freddie Mac had the quarter’s lowest delinquencies at 0.64% and 0.79%, respectively.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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