Mortgage Bankers Association
10/27/2026 | News release | Distributed by Public on 10/27/2026 07:35
Delinquency Rates for Commercial Properties Increased in the Third Quarter of 2026
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WASHINGTON, D.C. (October 27, 2026) - Delinquency rates for mortgages backed by commercial properties increased during the third quarter of 2026. This is according to the Mortgage Bankers Association's (MBA) latest commercial real estate finance (CREF) Loan Performance Survey.
"Delinquency rates for commercial mortgage loans increased modestly in the third quarter. Challenging fundamentals, particularly in the multifamily and office markets, along with higher rates, are having an impact on performance," said Mike Fratantoni, MBA's SVP and Chief Economist. "However, delinquency rates remain historically low across most capital sources. The large number of scheduled maturities coming due amidst the recent spike in interest rates will continue to be a headwind for commercial mortgage performance in the quarters ahead."
The balance of commercial mortgages that were not current increased in the third quarter of 2026.
- The trend in the share of loans that were delinquent was mixed across the major property types. Office continued to exhibit the highest delinquency rates.
- Among capital sources, CMBS loan delinquency rates saw the highest levels.
- 4.97% of CMBS loan balances were 30 or more days delinquent, up from 4.82%.
- Delinquency rates for other capital sources remained relatively low compared their historical norms.
- 1.33% of life company loan balances were delinquent, up from 1.19%.
- 1.16% of GSE loan balances were delinquent, up from 1.11%.
- 0.90% of FHA loan balances were delinquent, down from 1.06%.
MBA's CREF Loan Performance survey collected information on commercial and multifamily mortgage portfolios as of September 30, 2026. This quarter's results build on similar surveys conducted since April 2020. Participants reported on $3 trillion in loans as of September 2026, representing 59 percent of the $5 trillion in total commercial and multifamily mortgage debt outstanding (MDO) as of the second quarter of 2026.
For more information on MBA's CREF Loan Performance Survey, please visit: www.mba.org/store/products/research/general/report/commercial-real-estate-finance-loan-performance-survey.
Mortgage Bankers Association published this content on October 27, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 27, 2026 at 13:35 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]