Delinquency rates for commercial and multifamily mortgage loans remain near rock bottom, according to the Mortgage Bankers Association’s latest Commercial/Multifamily Delinquency Report.
"Mortgages backed by commercial and multifamily properties continue to perform extremely well," MBA Vice President of Commercial Real Estate Research Jamie Woodwell said in a statement.
"Delinquency rates are at or near their all-time lows across most capital sources. This continues to be driven by strong property fundamentals, increasing property values, still-low mortgage rates and readily available financing," he added.
The report looks at delinquency rates for five of the largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities, life insurance companies, Fannie Mae and Freddie Mac.
Q1 delinquencies based on unpaid principal balance by group are as follows, according to the report:
- Banks and thrifts (90 or more days delinquent or in non-accrual) = 0.51%, unchanged from the fourth quarter of 2017.
- Life company portfolios (60 or more days delinquent) = 0.02%, a decrease of 0.01 percentage points from the fourth quarter of 2017.
- Fannie Mae (60 or more days delinquent) = 0.13%, an increase of 0.02 percentage points from the fourth quarter of 2017.
- Freddie Mac (60 or more days delinquent) = 0.02%, unchanged from the fourth quarter of 2017.
- CMBS (30 or more days delinquent or in REO) = 3.93%, a decrease of 0.15 percentage points from the fourth quarter of 2017.
