Commercial mortgage delinquency rates rose in the first quarter as loans matured amid higher interest rates and uncertain property values, according to new data from the Mortgage Bankers Association.
“Commercial mortgage delinquency rates continued to increase during the first three months of 2024,” said Jamie Woodwell, head of commercial real estate research at MBA. “The increase was seen across most capital sources, pointing to the challenges caused by loans that are maturing amid higher interest rates, uncertain property values, and questions about some properties’ fundamentals.”
The MBA quarterly analysis tracks delinquencies for five major investor groups holding over 80% of outstanding commercial mortgage debt – banks, life insurance firms, mortgage-backed securities, and government agencies.
