Q1 Commercial and Multifamily Delinquency Rates Stay Low

Q1 Commercial and Multifamily Delinquency Rates Stay Low

June 10, 2019
Photo credit: Getty Images/ST-art
The delinquency rates on the commercial and multifamily mortgage sectors remained low during the first quarter, according to new data from the Mortgage Bankers Association (MBA).
Based on the unpaid principal balance (UPB) of loans, delinquency rate for banks and thrifts was 0.48 percent, unchanged from the fourth quarter of 2018, while the rate for life company portfolios was 0.04 percent, a decrease of 0.01 percentage points from the fourth quarter Fannie Mae’s delinquency rate of 0.07 percent was a scant 0.01 percent uptick from the previous quarter and Freddie Mac’s 0.03 percent rise was only 0.02 percent. The CMBS delinquency rate of 2.61 percent was a 0.16 percent quarter-over-quarter drop.
“Steady U.S. economic growth continues to support the financing and values of commercial and multifamily properties,” said Jamie Woodwell, MBA’s vice president of commercial research & economics. “Commercial/multifamily mortgage delinquencies remain at or near record lows for most capital sources, and it’s hard to imagine loans performing better than they currently do. Given the environment, there’s little reason to expect a marked deterioration of near-term performance.”