Delinquency rates for mortgages backed by commercial and multifamily properties declined in July, according to the Mortgage Bankers Association’s (MBA) latest monthly CREF Loan Performance Survey.
The findings:
– 95.5% of outstanding loan balances were current, up from 95.2% the previous month.
– 2.9% were 90-plus days delinquent or in REO, down from 3.0%.
– 0.2% were 60-90 days delinquent, unchanged from a month earlier.
– 0.3% were 30-60 days delinquent, down from 0.6%.
– 1.1% were less than 30 days delinquent, unchanged from a month earlier.
The takeaway:
“Commercial and multifamily mortgage delinquencies declined in July, hitting the lowest point since the onset of the pandemic,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “Loan performance continues to be very property-type dependent, with lodging loans still the hardest hit but showing strong improvement. 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.”
