Q4 Commercial/Multifamily Mortgage Delinquencies Remain Low

Commercial and multifamily mortgage delinquencies stayed at their rock-bottom levels during the fourth quarter of 2018, according to data from the Mortgage Bankers Association (MBA).

 

Working on the unpaid principal balance of loans, the MBA determined that fourth quarter delinquency rates for banks and thrifts was 0.48 percent, unchanged from the third quarter, while life company portfolios had a rate of 0.05 percent, a scant 0.01 percent uptick from the third quarter. Fannie Mae’s rate of 0.06 percent was a 0.01 percent dip from the previous quarter while Freddie Mac’s 0.01 percent rate was unchanged. The rate for commercial mortgage-backed securities was 2.77 percent, a decrease of 0.28 percentage points from the third quarter of 2018.

 

“It’s hard to imagine commercial and multifamily mortgages performing much better than they have recently,” said Jamie Woodwell, MBA’s Vice President of Research and Economics. “Future performance will be largely driven by changes in the economy and how they affect property incomes, property values and the ability of owners to refinance when their loans come due. Currently, all of those factors are favorable.”

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