Strong property values keep delinquencies down
Commercial and multifamily mortgage delinquencies remained at record lows in the third quarter of 2019, according to the Mortgage Bankers Association’s latest Commercial/Multifamily Delinquency Report.
“Loans financing commercial and multifamily properties continue to perform very well,” said Jamie Woodwell, MBA vice president of commercial real estate research. “Delinquency rates are at or near record lows for nearly every capital source, with the rate for commercial mortgages held by banks at its lowest since the inception of the series 25 years ago.”
“Solid property fundamentals, strong property values and low interest rates are all helping to keep delinquencies down,” Woodwell said.
MBA’s quarterly analysis looks at commercial/multifamily 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. Together, these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.
