In a sign of a strengthening economy, delinquency rates for mortgages backed by commercial and multifamily properties decreased again in April, according to the Mortgage Bankers Association’s (MBA) latest monthly CREF Loan Performance Survey released Monday.
Commercial and multifamily delinquency rates reached their lowest level since the start of the Covid-19 pandemic more than a year ago.
The survey found:
- 95.1 percent of outstanding loan balances were current, up from 95 percent in March.
- 3.2 percent were 90+ days delinquent or in REO, unchanged from a month earlier.
- 0.3 percent were 60-90 days delinquent, unchanged from a month earlier.
- 0.4 percent were 30-60 days delinquent, down from 0.5 percent a month earlier.
- 1.1 percent were less than 30 days delinquent, up from 0.9 percent.
“Commercial and multifamily mortgage delinquency rates declined in April but remain elevated overall, driven by the ongoing challenges facing many hotel and retail properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “New and early-stage delinquencies have fallen significantly from earlier in the pandemic, but later-stage delinquency rates have stayed high, as lenders and servicers work through the options for troubled properties. Vaccine rollouts, strong consumer balance sheets, and pent-up demand are all positive signals, both for new delinquencies and for working out troubled properties.”